New York, January 17, 2026, 14:27 EST — Market closed.
- Energy shares remained flat heading into the weekend while crude prices rose
- Markets remain closed Monday and will reopen Tuesday
- Investors zero in on geopolitical tensions, drilling activity, and postponed U.S. inventory reports
U.S. energy shares edged up on Friday, with the Energy Select Sector SPDR Fund (XLE) finishing at $47.69, a modest gain of 0.17%.
The timing is crucial since U.S. markets will be closed Monday for Martin Luther King Jr. Day, extending the break between Friday’s close and Tuesday’s reopening.
In this sector, that pause often magnifies swings tied to crude, which lately has been influenced as much by politics as by supply.
Wall Street dipped as the week wrapped up. The S&P 500 slipped 0.1% to 6,940.01 on Friday. The Dow shed 0.2%, and the Nasdaq lost 0.1%.
Oil finished higher on Friday as some investors unwound short positions ahead of the long weekend, analysts told Reuters. Brent crude closed at $64.13 a barrel, gaining 37 cents. U.S. West Texas Intermediate (WTI) rose 25 cents to $59.44. Phil Flynn from Price Futures Group attributed the buying to traders “not wanting to be caught short” during the break. Commerzbank analysts also highlighted potential disruption risks in the Strait of Hormuz. Reuters
Exxon Mobil climbed 0.59% to $129.89, with Chevron edging up 0.06% to $166.26 on Friday.
Analyst calls grew pickier heading into 2026. Bank of America cut ConocoPhillips to Underperform but raised Magnolia Oil & Gas to Buy. Analyst Kalei Akamine noted the bank stays “cautious on the oil macro” and favors companies with low breakeven prices—the oil price required to cover spending and dividends. Investing.com Canada
Drilling activity remained subdued on the supply front. According to Baker Hughes data cited by The American Oil & Gas Reporter, the total U.S. oil and gas rig count dropped by one to 543 for the week ending Jan. 16. Oil rigs inched up by one to 410, but gas rigs declined by two, settling at 122. The rig count is a key early indicator of upcoming production trends.
Yet the trade runs both ways. Should geopolitical tensions ease or supply expectations rise, crude prices can retreat just as fast — dragging energy stocks down with them.
The next key data release is pushed back. The U.S. Energy Information Administration announced its Weekly Petroleum Status Report will drop Thursday, Jan. 22, at 12:00 p.m. and 2:00 p.m. Eastern, shifted because of the federal holiday.
Traders will monitor weekend headlines closely, eyeing Tuesday’s reopening as a critical test for crude’s ability to maintain its current range. The focus will also be on whether energy stocks can stay in step heading into next week’s key events.
