New York, Jan 18, 2026, 13:38 ET — Market closed
- U.S. energy stocks finished Friday on a mixed note, while crude prices climbed ahead of the extended U.S. holiday weekend.
- Venezuela policy headlines have resurfaced, spotlighting the terms of Chevron’s license.
- Traders eye Tuesday’s market reopen and the delayed U.S. inventory numbers set for later this week.
U.S. energy stocks finished Friday slightly higher among the major diversified companies, while some refiners and drillers slipped near the close. The Vanguard Energy ETF climbed 0.3%, and the iShares U.S. Energy ETF edged up 0.2%.
The sector faced a shortened week as U.S. markets shut down Monday for Martin Luther King Jr. Day, reopening Tuesday. Traders saw the usual pattern: oil news driving moves ahead of fundamental data, paired with thinner liquidity once trading resumed. (New York Stock Exchange)
Oil prices offered no clear direction for the sector. Brent closed Friday at $64.13 a barrel, marking a 0.6% gain, while U.S. WTI ended at $59.44, up 0.4%. John Kilduff from Again Capital attributed the moves to buying ahead of the long weekend, with some investors closing out short positions—bets on prices dropping. Phil Flynn at Price Futures Group highlighted Venezuela as a wildcard, noting supply “has not become the tidal wave that was expected.” Meanwhile, Priyanka Sachdeva of Phillip Nova said the “underlying balance still points to ample supply,” describing Brent as “range-bound” amid a lack of clear demand recovery. (Reuters)
The Venezuela situation is now hitting U.S. energy stocks more directly, beginning with Chevron. U.S. Energy Secretary Chris Wright told Reuters the government is working “as fast as it can” to expand Chevron’s license in Venezuela. The new arrangement would let Chevron pay the Venezuelan government in cash rather than crude, freeing it to sell all the oil it produces there. (Reuters)
Simultaneously, the U.S. Department of Energy dismissed a market rumor as “false.” A spokesperson denied reports that the administration plans to use Venezuelan oil in a swap to replenish the Strategic Petroleum Reserve. Reuters noted the reserve now holds roughly 414 million barrels, about 60% of its total capacity. (Reuters)
On Friday, Exxon gained 0.6%, Chevron inched up slightly, and ConocoPhillips slipped 0.8%. Oil services showed a mixed picture: SLB rose 0.3%, but Halliburton lost 0.7%. Refiners struggled, with Marathon Petroleum down 1.1% and Valero falling 0.6%. Exploration-and-production stocks tracked by XOP held steady, while the oil-services ETF OIH dipped 0.2%.
The sector’s caught between two volatile forces: geopolitics and supply. The Iran-risk premium — the added cost priced in for potential disruption — could vanish quickly if the news calms down. But a real push to boost Venezuelan exports would push crude prices, and producers’ cash flows, in the opposite direction.
Risks cut both ways. A fresh flare-up near Iran or disruptions in shipping lanes might send crude prices climbing, boosting producers. On the flip side, easier access to Venezuelan oil or signs of weakening demand could weigh on prices and drag energy stocks behind the broader market.
Natural gas lurked in the background. Asian spot LNG prices climbed this week, driven by a chillier weather forecast. Energy Aspects analyst Kesher Sumeet noted that forecasts for Northeast Asia and Europe “turned colder week-on-week,” a change that could tighten winter gas supplies and keep gas-linked stocks under scrutiny. (Reuters)
The next key trigger will be U.S. inventory data. The Energy Information Administration’s Weekly Petroleum Status Report is set for Thursday, Jan. 22, with release times adjusted following Monday’s federal holiday, the agency confirmed. Traders will watch closely for any shifts in U.S. crude and refined product stocks as the market comes back from the holiday pause. (Eia)
