NEW YORK, Jan 5, 2026, 04:54 ET — Premarket
- Valero shares rose more than 5% in premarket trading, with U.S. refiners among top early gainers.
- Trump’s comments on Venezuela and an embargo on Venezuelan oil exports put energy supply in focus.
- Investors next watch U.S. factory-demand data and Valero’s Jan. 29 earnings release.
Valero Energy shares jumped 5.3% to $174.07 in premarket trading on Monday, after ending Friday at $165.31. The refiner remains about 6% below its 52-week high of $185.62, according to Investing.com data.
The move put refiners in focus after U.S. President Donald Trump said Washington would take control of Venezuela following the capture of President Nicolas Maduro, and would keep an embargo on Venezuelan oil exports. Venezuelan heavy crude is a staple for U.S. Gulf Coast refineries, and the embargo has already upended those flows, Reuters reported.
Oil prices slipped early Monday despite the headlines, as traders weighed the turmoil against ample supplies and OPEC+ maintaining output in the first quarter. Brent futures were down 0.8% at $60.26 a barrel and U.S. West Texas Intermediate fell 0.9% to $56.79, Reuters reported.
For Valero, the immediate debate is about refining margins, not just crude prices. Traders watch the “crack spread” — the gap between the cost of crude and the selling price of fuels such as gasoline and diesel — because it is a rough proxy for refiner profitability.
The U.S. embargo that took effect on Jan. 1 has disrupted Venezuelan exports and left storage filling quickly, prompting state firm PDVSA to ask joint ventures to cut output, Reuters reported. “Ample global supply should continue to cap those risks for now,” said Ole Hansen, head of commodities research at Saxo Bank. Reuters
Valero’s rise tracked strength across the refining group, with Marathon Petroleum up 5.7% and Phillips 66 up 4.6% in premarket dealing, Investing.com data showed. Investors also had U.S. data due later on Monday — including the ISM manufacturing survey — that can shift expectations for fuel demand.
Technicians noted the premarket jump pushed Valero above its 50-day moving average of about $171.80, a line many short-term traders use to judge momentum. The 20-day moving average sits near $167.39, Barchart data showed.
But headline-driven rallies can reverse quickly once liquidity returns in the regular session. A rebound in crude prices or a sudden narrowing in gasoline and diesel cracks would pressure refiners’ earnings power.
Traders will also watch weekly U.S. petroleum inventory data later this week and any further signals on how quickly Venezuelan output and exports could change. Those shifts can move the market for heavier grades of crude that many complex refiners prefer, altering costs even if benchmark oil prices stay calm.
