The energy trade is back on.
Recent news out of Venezuela is a big reason why.
As I’m sure you’ve heard, US special forces launched a military strike and captured Venezuelan president Nicolas Maduro on January 3.
This is a major development any way you look at it, but especially so for the energy market.
You see, Venezuela has the world’s largest oil reserves. And according to President Trump, US oil companies are going to cash in on the country’s energy deposits.
Source: The New York Times
Naturally, this news lit a fuse under energy stocks. Many leading names are now up double-digit percentage returns on the year.
More important, this could be the start of a major leg up for energy. After all, we’re also seeing some massive breakouts.
Exxon Mobil Corp. (XOM)—the world’s largest publicly traded energy stock—has rallied 5.3% since the start of the year. It’s now starting to climb out of a massive base that it’s been building since 2023.
Source: StockCharts
Valero Energy Corp. (VLO)—a leading oil-refining company—also looks phenomenal. It’s rallied 12% since the start of the year and is also now climbing out of a huge base:
Source: StockCharts
We’re long both of these energy leaders in my trading advisory, RiskHedge Live. And I see both headed much higher from here.
But they’re hardly the only energy stocks I’m bullish on. Tankers—an energy subsector—are also on fire.
These companies move oil from Point A to Point B. They could be major beneficiaries of the Venezuela news.
DHT Holdings (DHT) has surged 17% since January 6. Frontline PLC (FRO) has soared 29% over the same period, while Teekay Tankers Ltd. (TNK) has spiked 21%.
DHT appears to be just getting warmed up. As we can see below, DHT is starting to climb out of a massive base:
Source: StockCharts
The same is true for FRO:
Source: StockCharts
The recent action of tanker stocks and their long-term charts tell me this group could be major winners in 2026 and beyond.
If you’re looking for exposure to energy stocks with explosive upside, you might want to check out our latest pick in Express Trader. It’s a fast-moving energy name we added just two weeks ago, and it’s already starting to break out.
Learn how to get the full details on this trade, and our other portfolio positions, at this link here.
Justin Spittler
Chief Trader, RiskHedge
