The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0947 ET - European natural-gas prices gain in afternoon trade following the shutdown of Australia's Pluto LNG facility and on expectations of stronger demand due to colder temperatures. The benchmark Dutch TTF contract trades 2.3% higher at 48.12 euros a megawatt hour, and is up more than 10% on the month. Australian company Woodside Energy has reportedly taken the plant offline on Monday and launched an investigation into the cause of the unplanned event. The halt adds to broader supply concerns in the market amid faster-than-usual withdrawals from gas storage in the EU and escalating tensions between Russia and Ukraine. Traders are now keeping a close eye on any developments potentially affecting Russian pipeline flows to Europe before a deal to transit gas via Ukraine expires at the end of the year. (giulia.petroni@wsj.com)
0938 ET - The case for nuclear energy is becoming stronger due to rising electricity demand, interest from AI and data centers, and growing international support, Barclays analysts write in a research note. This evolving landscape highlights opportunities across the utilities, aerospace and defense sectors, the analysts say. That positions nuclear as a key player in the energy transition. Companies involved in the nuclear supply chain, such as the U.K.'s Centrica, Finland's Fortum, France's Engie, and Rolls Royce, stand to benefit, they say. (christian.moess@wsj.com)
0857 ET - U.S. natural gas futures rise as weekend weather forecasts added heating demand for early December. "While short covering has helped fuel explosive upside in Nymex futures over the past 10 days, declining short exposure and further short-covering as prices soared mid-to-late last week are likely to have partially defused this upside threat," Eli Rubin of EBW Analytics says in a note. "While incoming cold weather shifts can still spark a sharp ascent in pricing at any point-particularly in early winter-it may be more difficult for the January contract to surpass Friday's intraday high mark of $3.639 without the help of external bullish catalysts." December gas, which expires tomorrow, is up 6.3% at $3.327/mmBtu and the January contract is up 5.4% at $3.465/mmBtu.(anthony.harrup@wsj.com)
0823 ET - Oil futures are lower at the start of a shortened trading week for the U.S. with focus on geopolitical tensions in Europe and the Middle East and the OPEC+ meeting scheduled for December 1. "The consensus on OPEC+ to further roll out the extension for cuts is strong," Mukesh Sahdev of Rystad Energy says in a report. "OPEC+ is likely to proceed cautiously, extending production cuts for another one to two months with a strong focus on compliance, balancing crude exports vs. product exports, while closely monitoring ongoing conflicts in Russia-Ukraine, Gaza and Israel-Iran." WTI is off 0.3% at $71.02 a barrel and Brent is 0.2% at $75.02 a barrel. (anthony.harrup@wsj.com)
0650 ET - Equinor is set to benefit from a period of higher natural gas prices, Barclays analysts write. European natural gas prices have risen 30% so far in November, driven by colder weather and lower wind power output, the bank says. Gas storage is being rapidly drawn down while supply is tight. Barclays notes that Equinor remains a key supplier of natural gas into Europe with the ability to add flexible volumes, and as such is sensitive to European natural gas prices. Reflecting this, and a more pragmatic approach from the company to low carbon investments, the bank upgrades its rating to overweight from equal weight. It maintains its 400 Norwegian kroner price target. Shares rise 0.8% higher to 274.70 kroner. (dominic.chopping@wsj.com)
0521 ET - Anglo American will receive up to $4.9 billion in aggregate for its steelmaking coal division. This is an attractive price and higher than expected, Citi analysts write in a research note. "We had $2.9 billion value for the business in our model, which compares positively to $3.6 billion clean payment," they say. The London-listed mining giant will receive $550 million in price-linked earnouts, which should be achievable given the outlook for coal prices, Citi says. However, the $450 million contingent on restart at the Grosvenor mine in Australia looks more uncertain, the U.S. bank says. Shares are up 1.5% 23.95 pounds. (christian.moess@wsj.com)
0410 ET - Siemens Energy shares could rally even further, despite already almost rising four-fold this year, Berenberg analysts write in a research note. The German energy company's troubled wind-energy division is being assigned a negative valuation in a range of 8 billion euros to 20 billion euros, Berenberg's analysis shows. The segment could be valued at as much as 6 billion euros, representing a significant potential valuation upswing, the German bank says. "Add to this the upside that resides in the booming gas and grids divisions and the equity case is more powerful still," the analysts say, lifting their share price target to 70 euros from 35 euros. Shares are up 1.4% at 48.98 euros. (christian.moess@wsj.com)
0400 ET - Oil prices slip in early European trade following reports that Israel is nearing a ceasefire agreement with Hezbollah, but growing concerns over Russia and Iran limit losses. Brent crude and WTI are down 0.9% at $73.99 and $70.59 a barrel, respectively. Both benchmarks closed last week with gains of 6% amid fears of supply interruptions after the Russia-Ukraine war escalated. Meanwhile, Iran said it would launch a significant number of new advanced centrifuges at its nuclear facilities in response to a censure resolution passed by the U.N. nuclear watchdog. "Geopolitical uncertainties are keeping oil prices volatile," ANZ Research analysts say. Traders will now focus on OPEC+'s next move, as any further delay in the group's plan to phase out voluntary output cuts will be crucial for the market. (giulia.petroni@wsj.com)
0359 ET - Anglo American managed to sell its remaining coal assets at a higher valuation than expected, RBC Capital Markets analyst Marina Calero writes in a research note. Shares should react positively to the sale, she says. The London-listed mining giant agreed to sell the coal business to Peabody Energy for up to $3.8 billion versus a consensus estimate of $2.8 billion, the analyst says. "We see this as a positive event that will serve to reassure the market on management's commitment to execute on the restructuring plan." Shares are up 1.5% at 23.94 pounds. (christian.moess@wsj.com)
(END) Dow Jones Newswires
November 25, 2024 09:47 ET (14:47 GMT)
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