New York, Jan 14, 2026, 11:11 EST — Regular session.
- Exxon shares gained roughly 1.8% by late morning trading
- Reuters reports that the Baton Rouge refinery is gearing up to process Venezuelan crude once more
- Traders are eyeing crude price spreads as Exxon’s Jan. 30 earnings approach
Exxon Mobil shares climbed Wednesday following a Reuters report that the company plans to start processing Venezuelan crude at its Baton Rouge refinery in Louisiana. This move could alter feedstock expenses at one of the biggest U.S. refining hubs. The stock gained 1.8%, reaching $128.80 in late morning trading.
The timing is crucial as Venezuelan barrels are back on the market, starting to impact crude prices. For refiners, even slight shifts in crude discounts can swiftly alter margins, particularly at facilities set up for heavier grades.
Investors have kept an eye on the “WTI-Brent spread” — the difference between U.S. benchmark WTI and global benchmark Brent — as a rough gauge of whether U.S. crude is cheap enough to export and if foreign barrels are weighing on domestic prices.
Exxon is gearing up to process Venezuelan crude again at its Baton Rouge refinery, according to sources close to the plant. The facility, which can handle 522,500 barrels per day, had halted Venezuelan heavy sour crude runs following U.S. sanctions, the insiders said. An Exxon spokesperson did not immediately respond for comment. (Reuters)
The WTI discount to Brent widened to an eight-month high this week, driven by expectations of increased Venezuelan crude heading to U.S. ports, according to traders and analysts. Matt Smith, lead oil analyst at Kpler, said Venezuelan flows could boost U.S. crude exports by roughly 100,000 barrels per day in Q1. Dylan White from Wood Mackenzie noted that “a heavier U.S. crude diet” would push more WTI into export channels. John Evans of PVM Oil Associates highlighted Iran-related risks as a factor keeping Brent supported. (Reuters)
Exxon now faces the challenge of determining if this shift will last and how soon it will impact refinery utilization and product margins. Its Baton Rouge plant, located on the U.S. Gulf Coast network, allows refiners to quickly swap grades and reroute cargoes as economics shift.
The stock has also gained support from the straightforward math of oil-linked cash flow: as crude spreads and product margins shift, analysts often adjust near-term earnings forecasts for integrated producers with sizable downstream businesses.
Exxon announced Tuesday that it will release its fourth-quarter 2025 results on Jan. 30. The company plans to issue a press release at 5:30 a.m. Central time. (Exxon Mobil Corporation)
Still, a downside remains clear: crude flows might turn uneven, policy could change, or global crude prices might fall enough to squeeze refining margins, erasing gains from cheaper feedstock.
Traders are eyeing the WTI-Brent spread closely, alongside initial signs of Venezuelan cargo arrivals. Still, Exxon shareholders’ next major event is the earnings report and call set for Jan. 30.
