The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1208 ET - As energy-related price increases burden consumers' wallets and raise business costs, a survey released by the Kansas City Fed offered one bright spot for customers buying those products. In the survey which measures U.S. factory activity -- almost all firms reported higher transportation costs in the last two months, but most are passing through only 0-20% of energy-related cost increases to customers. "Our costs are up again due to market instability," a survey respondent said. We cannot increase them again without losing customers." (jessica.coacci@wsj.com)
1108 ET - The U.K. could face higher market turbulence than the U.S. and the eurozone due to its poor economic and inflation outlook, Validus Risk Management's Shane O'Neill says in a note. U.K. markets have recorded high volatility since the start of the Middle East conflict as investors quickly repriced Bank of England interest-rate expectations. Investors shifted from fully pricing in two quarter-point BOE rate cuts this year prior to the war, to fully pricing in two rate rises given inflation concerns. "The combination of geopolitical risk, energy-driven inflation shocks, and uncertain central bank responses creates an environment where markets can, and will, move quickly," O'Neill says. (miriam.mukuru@wsj.com)
1052 ET - Natural gas in underground storage in the U.S. rose by 103 billion cubic feet last week to 2,063 Bcf, increasing the inventory surplus over the five-year average to 137 Bcf from 98 Bcf the previous week, the EIA reports. Storage for the prior week was revised down by 10 Bcf. Last week's injection was above the 94 Bcf average estimate in a Wall Street Journal survey of analysts, and bigger than the 64 Bcf five-year average injection for the week. Nymex natural gas is down 4.4% at $2.603/mmBtu.(anthony.harrup@wsj.com)
1049 ET - Higher inflation is expected to push up borrowing costs for U.K. inflation-linked bonds and overall borrowing expenses, Union Bancaire Privee's Peter Kinsella says in a note. Around 24% of the U.K.'s debt stock is inflation-linked and is vulnerable to rising inflation, Kinsella says. Data Wednesday showed U.K. annual consumer-price inflation rose to 3.3% in March as the Middle East conflict caused a jump in energy prices. The real yield on the September 2035 inflation-linked gilt last trades at 1.474%, having traded below 1.3% just prior to the start of the war in Iran, Tradeweb data show. (miriam.mukuru@wsj.com)
0957 ET - The euro-dollar exchange rate remains tied to oil prices in the near term amid the Iran war, HSBC analysts say in a note. The longer the Strait of Hormuz remains blocked, the greater the risk to global energy supplies and the more vulnerable the euro is against the dollar, they say. The Pentagon has told Congress it could take six months to fully clear mines in the strait, indicating it could take time before normal flow returns even if a peace deal is agreed. "If the eurozone economy continues to deteriorate, euro-dollar would face further headwinds," the analysts say. The euro falls 0.1% to $1.1690, having reached a 10-day low of $1.1679 earlier, LSEG data show. (renae.dyer@wsj.com)
0955 ET - The dollar's petrodollar status, where oil is largely priced and invoiced in dollars, could be eroded over time as countries outside the U.S. attempt to reduce their reliance on the currency, MUFG Bank's Derek Halpenny says. "I think one of the incentives in terms of denominating energy transactions in other currencies is to reduce the threat of [dollar] weaponization," he says. This is part of de-dollarization, or the global shift away from the dollar, that has been underway for years, he says. It makes sense for certain countries to agree swap lines to hold each other's currencies and then denominate transactions in non-dollar currencies, he says. (renae.dyer@wsj.com)
0942 ET - Brent crude is likely to remain above $100 a barrel unless there are clear signs the Strait of Hormuz will reopen, analysts at Commerzbank say. Although a ceasefire extension has eased immediate fears of damage to Gulf energy infrastructure, the continued closure of the key shipping route is keeping oil prices elevated. In afternoon European trading, Brent rises 0.8% to $102.69 a barrel, while WTI is up 1% to $93.86 a barrel, slightly trimming earlier gains. "The closure of the Strait of Hormuz remains the decisive factor," the analysts say. "As long as there is no end in sight to the blockade of the strait, which is essential for oil trade, prices are likely to remain above $100."(giulia.petroni@wsj.com)
0940 ET - Uncertainty over the next steps in the Middle East conflict and the continued blockage of the Strait of Hormuz is keeping oil futures up despite President Trump's indefinite cease-fire extension. While the U.S. continues its blockade of ships in and out of Iran, Iran has fired on vessels attempting to cross the strait, keeping oil shut in and worsening the supply situation. No date has been set for the next round of talks. "Tensions remain high as the U.S. blockade continues to play the waiting game with Iran," Dennis Kissler of BOK Financial says in a note. "While the U.S. and Iran remain at a stalemate, some escalated demand destruction is becoming more apparent." WTI is up 1.1% at $94.01 a barrel and Brent is 0.8% higher at $102.77. (anthony.harrup@wsj.com)
0936 ET - U.S. natural gas futures pull back after six sessions of gains, with the market turning its focus to the EIA's inventory report due at 10:30 a.m. ET. Natural gas storage likely increased by 94 Bcf last week, increasing the surplus over the five-year average by 30 Bcf to 138 Bcf, according to a Wall Street Journal survey of analysts. "The following two builds will be closer to normal due to cooler air into the northern U.S.," NatGasWeather.com says in a note. Nymex natural gas is down 2.6% at $2.652/mmBtu.(anthony.harrup@wsj.com)
0905 ET - Investment-grade credit looks appealing given the unpredictable macroeconomic environment caused by the Middle East war, Payden Rygel's Natalie Trevithick says in a note. After posting solid returns in 2025, the asset class is expected to remain resilient in 2026 despite the uncertainty, Trevithick says. Investment-grade credit "offers attractive income, relative stability, and diversification alongside equities and other asset classes", she says. (miriam.mukuru@wsj.com)
0819 ET - American Airlines aims to offset the majority--but not all--of higher jet fuel costs this year, a slightly lower percentage than rival United Airlines. Chief Executive Robert Isom tells CNBC he expects to recover 90% or more of fuel costs by the end of this year. United said earlier this week it intends to offset 100% of the higher costs, mainly through higher fares and lower capacity. Isom estimates higher fuel prices had a $400 million impact during the first quarter. He says fares will continue to increase if fuel prices remain high, and the company is adjusting capacity to balance supply and demand. (katherine.hamilton@wsj.com)
0803 ET - Bitcoin continues to ease as signs of ongoing tensions between the U.S. and Iran dampen demand for risk appetite. Renewed risk aversion encourages investors to take profits in bitcoin after it reached an 11-week high on Wednesday following President Trump's announcement of an extension to the cease-fire with Iran. Bitcoin's pullback is relatively modest, however, Trade Nation's Davis Morrison says in a note. "Overall, cryptos continue to behave well in the current circumstances and have experienced reduced volatility given the ongoing geopolitical upheaval." Bitcoin's daily moving average convergence divergence suggests moderate appreciation which could increase if it breaks and holds above $80,000, he says. Bitcoin falls 1.3% to $77,472 after reaching as high as $79,480 Wednesday, LSEG data show. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
April 23, 2026 12:08 ET (16:08 GMT)
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