The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0204 GMT - The Malaysian government's RON95 fuel subsidy cut might not materially disrupt consumption trends, as most users consume less than the revised quota, RHB IB analyst Soong Wei Siang says in a note. Malaysia is cutting the monthly quota for subsidized RON95 fuel to 200 liters from 300 liters per person amid rising oil prices. Policy support and stable domestic demand will likely sustain the consumer sector's earnings, but prolonged Middle East tensions might pose inflation risks, he says. Names with defensive qualities and domestic-centric earnings are still preferred, as they are seen to be insulated amid heightened geopolitical uncertainties, he adds. RHB maintains an overweight rating on Malaysia's consumer sector, pegging Nestle (Malaysia), Mr. D.I.Y. Group (M), Eco-Shop Marketing, Farm Fresh and AEON Co. (M) as its top picks. (yingxian.wong@wsj.com)
2335 GMT - Oil rises in early trade on more supply-disruptions concerns spurred by widening Middle East conflict. Yemen's Houthi rebels have joined the conflict, claiming responsibility for a second attack on Israel within 24 hours. Houthi militants in Yemen have threatened shipping through the Red Sea, ANZ Research analysts say in a research report. "Saudi Arabia has managed to get around the effective closure of the Strait of Hormuz by utilising its east-west pipeline to get up to" 6 million barrels per day of oil to the international market through the Red Sea, the analysts note. Front-month WTI crude oil futures are 2.8% higher at $102.43 per barrel; front-month Brent crude oil futures are 2.6% higher at $115.53 a barrel.(ronnie.harui@wsj.com)
2323 GMT - Australia's national cabinet meeting to discuss the oil price shock has begun in Canberra amid calls for all the leaders present to avoid implementing the kind of heavy handed measures that were unveiled during the Covid-19 lockdowns. For the moment, there is no fuel rationing, but concerns will grow around it the longer the war in Iran continues. Treasurer Jim Chalmers has not explicitly ruled out temporarily cutting fuel taxes to lower costs for consumers. The meeting is expected to focus heavily on shoring up fuel supplies from local refineries and shipments. (james.glynn@wsj.com; X @JamesGlynnWSJ)
2243 GMT - Australian miners should have enough diesel to bridge a short disruption in fuel supplies, Jefferies says. Miners appear to have roughly 1-3 weeks of diesel on site and about 4-6 weeks of inbound supply visibility, it says. "The more credible and lasting impact is ongoing cost inflation from the rise in diesel pricing, even in a de-escalation scenario," says Jefferies. Elevated diesel prices will drive up costs of everything from contract mining, consumables, reagent freight and contract haulage to export logistics, shipping and mine-site aviation, it says. "Higher costs could be manageable in a positive commodity environment," says Jefferies. "However, a longer conflict and tighter oil markets point to a stagflation squeeze." Jefferies highlights coal and iron ore miners as most at risk given the large volumes they need to move. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
2226 GMT - U.S. investors' main question for UBS about Australian miners: How much diesel do they have? Questions about diesel supply have been ramping up as investors weigh the prospect of fuel rationing in Australia, UBS analysts say. They range from "cost impacts and sensitivities for each of our miners to potential for rationing/the pathway to demand destruction and supply conservation," UBS says. In a separate note, UBS analysts say they met with 17 mining companies in Western Australia recently. "Companies we spoke to noted anywhere from 1 week to 1 month of fuel supplies on hand, but no visibility beyond mid-April given uncertainty around the timing of the end to the Middle Eastern conflict," UBS says. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
2209 GMT - Amplitude Energy's next well is effectively a must-win for the growth thesis, says Morgans. Amplitude recently said the natural-gas discovery by the Isabella-1 well couldn't be developed commercially. Analyst Adrian Prendergast says Amplitude's balance sheet and A$100 million of Ebitdax in 1H buy it time. "Our view on value in Amplitude has been dented, but not destroyed," Morgans says. Still, it retains a buy call. "While it is hard to ignore such large short-term catalysts, we keep coming back to our value on Amplitude's existing production of A$2.75/share, which remains a high-watermark, low-case valuation for the stock," Morgans says. Amplitude ended last week at A$1.59/share, roughly half of Morgans's new A$3.00/share price target. (david.winning@wsj.com; @dwinningWSJ)
2129 GMT - Australian refineries can only meet a fraction of domestic fuel demand, says Jefferies. The conflict in Iran is driving up prices of gasoline and diesel, with Australia's competition regulator concerned about supply issues in areas including city suburbs, regional towns and remote areas. Jefferies estimates Australia's refinery production can meet some 37% of gasoline demand and only around 14% of diesel demand. That's based on an analysis of Australian Petroleum Statistics data for last year. "Even in Queensland and Victoria, where Ampol and Viva Energy have refineries respectively, production at Lytton and Geelong is insufficient to meet total state demand for either gasoline or diesel," analyst Michael Simotas says. (david.winning@wsj.com; @dwinningWSJ)
2106 GMT - The Australian economy could have gone backward because of the oil price shock and threat to energy supply, says Rory Robertson, economist at Five-Ways Economics. If the economy didn't actually shrink in March, then growing constraints across many industries via the suddenly elevated price and reduced availability of fuel--especially diesel--may force economic activity to shrink modestly in April, he says. The outlook depends on whether or not the problem goes away as quickly as it arrived, Robertson says. The history here is that sudden--and then prolonged--oil shocks tend to be economic disasters, Robertson adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)
2103 GMT - Australia's national cabinet meeting will aim to shore up fuel supplies as leaders hope to avoid more "heavy handed" measures to deal with a crisis that is driving up gasoline prices and clouding the economic outlook, says Treasurer Jim Chalmers. A unified approach to the crisis should alleviate any need for fuel rationing, which so far hasn't been required. Chalmers says the meeting will consider a range of responses, but he would not be drawn on the option of cutting fuel taxes to lower costs for consumers. Chalmers said he expects the economy to continue growing, although it will take a hit from the global oil crisis. (james.glynn@wsj.com; X @JamesGlynnWSJ)
2101 GMT - Australian Prime Minister Anthony Albanese will convene a national cabinet meeting in Canberra to address the growing energy crisis affecting the economy. The meeting, which will include state government leaders, is expected to discuss the issue of fuel rationing. Albanese has called for unity across states on how this could be applied if needed. For now there is no rationing. Albanese is also facing calls to ease federal fuel taxes to lower prices for consumers, but the main thrust of the meeting will be on strengthening supply chains. (james.glynn@wsj.com; X @JamesGlynnWSJ)
(END) Dow Jones Newswires
March 29, 2026 22:04 ET (02:04 GMT)
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