"The most significant macro development for energy investors in 2026 is the Trump administration's move to control Venezuelan oil production and sales. Energy Secretary Chris Wright announced this week that the U.S. will manage the flow and sale of Venezuela's oil indefinitely, with revenues deposited into U.S.-controlled accounts before being released back to Venezuela for infrastructure investment. The administration aims to drive oil prices toward $50 per barrel, potentially adding 2 million barrels per day to global supply if Venezuela's degraded infrastructure can be rehabilitated."
"For FENY investors, this policy presents a double-edged sword. Lower oil prices would pressure the fund's upstream producers, particularly XOM and CVX which together represent 38% of the portfolio. However, the administration's pro-drilling agenda and plans to ease permitting for U.S. energy projects could offset Venezuela-related headwinds. Watch the weekly EIA Petroleum Status Report and monthly OPEC production data to track whether Venezuelan barrels actually materialize."
FENY is a $1.3 billion ETF with a 0.084% expense ratio that offers pure-play exposure to U.S. energy companies, including majors Exxon Mobil and Chevron and midstream firms like Williams Companies. The fund returned 196% over five years reflecting sector recovery from pandemic lows, though recent gains are modest with oil near the mid-$50s per barrel. U.S. policy to control Venezuelan oil could add up to 2 million barrels per day and target $50 per barrel, creating downside pressure on upstream producers that are concentrated in FENY. Pro-drilling U.S. measures could partially offset Venezuela-driven supply increases. Monitor weekly EIA and monthly OPEC data to gauge Venezuelan output and likely price impact.
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