Exxon Mobil Sees Setback in Venezuela

British judge cancels order to freeze $12 billion in PdVSA assets.

When Exxon Mobil (XOM) won a judgment to freeze $12 billion in the assets of Petroleos Venezuela SA, it was considered a major victory for the Big Oil company. Now, however, XOM is experiencing a setback in its fight against the state-controlled oil company. A British judge has canceled the order to freeze PdVSA's assets.

It was widely considered that the asset freeze was part of the reason oil prices soared to more than $100 a barrel, as Hugo Chavez, president of Venezuela, threatened to stop shipping oil to the United States. Now, however, oil prices continue to climb on their own (after a drop yesterday), despite the reversal.

XOM stock is largely unaffected by the move, as it is gaining again on the stock market with the rise in oil prices and optimism on the stock market.

Disclosure: Author does not own XOM.