New York, Feb 7, 2026, 13:33 EST — The market has closed.
U.S. energy shares climbed Friday, with the S&P 500 energy sector index (.SPNY) finishing up 1.88% at 820.03 as traders eye fresh developments out of the Middle East. 1
This matters now because the sector’s moves are being driven less by drilling activity and more by risk premium—the extra charge traders tack on when supply feels shaky. Iran has threatened to hit U.S. bases in the region if it comes under attack, but at the same time, it’s hinting that indirect nuclear negotiations with Washington might reopen soon. 2
Oil bounced back on Friday, shrugging off earlier declines to close out the week higher. Brent closed at $68.05 a barrel, while U.S. West Texas Intermediate wrapped up at $63.55. “Status quo nervousness over Iran” hasn’t gone anywhere, said John Kilduff, partner at Again Capital. 3
Exxon Mobil finished up 2.03% at $149.05 on Friday. Chevron shares moved higher too, closing at $180.86, up 0.91%. ConocoPhillips advanced 2.51% to settle at $107.62. The Energy Select Sector SPDR Fund (XLE)—a benchmark energy ETF—closed at $53.25. 4
Conoco drew attention Thursday after the company outlined plans to slash both capital and operating expenses by $1 billion in 2026, looking to rein in spending after quarterly earnings came in below expectations, hit by softer crude prices. CEO Ryan Lance said Conoco’s priority is on cutting costs but also returning 45% of its cash from operations to shareholders. But for RBC Capital Markets’ Scott Hanold, the main question for investors remains: when will free cash flow turn the corner—the pool that supplies buybacks and dividends. 5
Supply jitters linger. Trade sources speaking to Reuters say Kazakhstan’s CPC Blend shipments might shrink by up to 35% this month, after January fires hit the giant Tengiz oilfield. Crude volumes through the Caspian Pipeline Consortium could slide from roughly 1.7 million to just 1.1 million barrels a day. 6
Saudi Aramco has lowered its official selling price (OSP) of March Arab Light crude for Asian buyers, dropping it to match the Oman/Dubai benchmark. That’s the weakest level since before 2019, marking more than five years. Richard Jones, crude analyst at Energy Aspects, described the move as “constructive” for Dubai time-spreads. He noted, though, that the market had been pricing in an even larger cut. 7
Still, it’s a two-sided risk. Diplomacy that dials down tensions could wipe out crude’s geopolitical premium in a hurry. Right now, traders are alert to any hint that global supply might be outpacing demand. 8
U.S. markets are back open Monday, and it won’t be long before the next batch of data lands. The Energy Information Administration’s Short-Term Energy Outlook hits Feb. 10, with the weekly petroleum status update following on Feb. 11. OPEC and the International Energy Agency will both release their monthly oil reports right after, on Feb. 11 and Feb. 12. 9
