The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1332 ET - Oil futures extend gains as the standstill in the U.S.-Iran conflict leaves the Strait of Hormuz virtually closed and increases supply concerns. "The market has realized there isn't necessarily going to be a very near-term increase in flows," says Rebecca Babin of CIBC Private Wealth US. The large withdrawal last week in U.S. crude stocks, and the record 6.4 million b/d in crude exports, added to concerns. The data show that inventory draws "are not in the future, they're now," Babin says. Brent is up 7.4% at $119.52 a barrel, above the $119.50 high reached March 9 at the beginning of the war. WTI is up 7.6% at $107.53.(anthony.harrup@wsj.com)
1240 ET - Consumers are pulling back on eating out, as they are forced to pay more at the gas pump. "Rapidly rising gas prices stressed the balance sheet of the lower-income consumer that our business over-indexes to," Wingstop CEO Michael Skipworth says on a call with analysts. "As a result, our same-store sales trend worsened during the quarter and resulted in a decline of 8.7%." The restaurant chain was also hurt by winter storms early in the year that prompted temporary store closures at over 700 locations, he adds. "If you exclude these unusual external factors, performance would have broadly been in line with our expectations," Skipworth says. Wingstop sinks 5%. (connor.hart@wsj.com)
1233 ET - Higher fuel costs are eating into CN Rail's operations and could worsen as the year progresses. Adjusted operating ratio rose to 64.2% from 63.4% a year earlier, a key cost-efficiency measure where a lower number signals stronger profitability. Analysts had expected it to deteriorate to 64%. CFO Ghislain Houle warned the pressure may intensify, saying on the investor call that "the dark cloud I'm seeing right now in 2Q is fuel. If fuel prices remain where they are for the rest of the quarter, that could be a hit on the OR north of 200 basis points and a small hit on EPS of about a couple of pennies." (adriano.marchese@wsj.com)
1225 ET - The overall message in the Bank of Canada's decision to remain on hold is that the economy remains resilient despite recent shocks and elevated uncertainty, says Servus Credit Union's Charles St-Arnaud. The central bank's projections for the economy haven't materially changed since January, he notes. The economist says there is nothing in the BoC statement and updated outlook to change his view the policy rate will remain unchanged for an extended period, as policymakers faces a tug-of-war between downside risks to growth and upside risks to inflation. However, St-Arnaud says the longer oil prices remain elevated, the more likely a rate hike becomes. (robb.stewart@wsj.com; @RobbMStewart)
1223 ET - Until there is clarity, expect the Bank of Canada to leave interest rates steady, says Bank of Montreal's Benjamin Reitzes. The central bank left the policy rate at 2.25% as expected, though Reitzes says there are a huge number of unknowns in the BoC's outlook, with oil and trade looming large. Still, the strategist says it is apparent policymakers want to push back on any second round inflation effects, so CPI data in the coming months will be watched closely if energy prices don't pull back. (robb.stewart@wsj.com; @RobbMStewart)
1201 ET - Oil futures extend gains as the EIA reports bigger-than-expected declines in U.S. crude oil and product inventories. Crude stocks fell by 6.2 million barrels last week, with exports posting a weekly record of 6.4 million barrels a day. The U.S. is becoming "the supplier of last resort for an oil-starved world," TradeStation's head of global market strategy David Russell says in a note. "The Hormuz crisis continues to squeeze fuel supplies as peak driving season approaches." U.S. gasoline stocks fell by 6.1 million barrels and distillate stocks were down by 4.5 million barrels. WTI is up 5.3% at $105.25 a barrel and Brent is up 5.6% at $117.56. (anthony.harrup@wsj.com)
1109 ET - The Norwegian krone could extend its recent gains against the dollar slightly on interest-rate differentials, Societe Generale strategists say in a note. The Federal Reserve could cut rates in due course under the next Fed Chair while the Norges Bank is expected to raise rates, they say. With 5-year U.S. yields at 4%, there is room for lower U.S. yields to drag the dollar lower against the krone, the strategists say. However, moves could prove limited given the market is already pricing a decent chance of a rate rise at the Norges Bank's meeting on May 7 and fully pricing a move by June, they say. The dollar falls 0.2% to 9.2898 krone. (renae.dyer@wsj.com)
1101 ET - European Central Bank policymakers shouldn't be swayed by weaker-than-expected German core inflation data, Pantheon Macroeconomics' Claus Vistesen says in a note. Core inflation slipped to 2.3% in April, from 2.5% in March, increasing downside risks for Thursday's eurozone print, he says. That could embolden some policymakers and analysts to argue that second-round effects from soaring energy prices are unlikely to materializes. "Don't buy it," Vistesen says. "Services inflation was depressed by a plunge in package holiday inflation in April, due to base effects linked to residual Easter effects, and those same base effects point to a snapback in May." Selling-price expectations in services more broadly signal inflation in this component rising to just under 4% by early 2027, he says. (edward.frankl@wsj.com)
1100 ET - The surprisingly sharp decline in German services inflation tempered the otherwise energy-driven rise in the headline inflation rate in April, KfW chief economist Dirk Schumacher says. Services inflation fell to 2.8% from 3.2% in March, though the headline overall level climbed to 2.9% from 2.7%. However, the decline in services inflation reflects at least in part a calendar effect from an earlier Easter and shouldn't therefore be interpreted as a genuine sign of easing domestic inflation, he says. The energy-price shock will continue to accelerate price dynamics in the coming months through second-round effects. However, headline inflation will remain well below the peaks of 2022, Schumacher says. (edward.frankl@wsj.com)
1049 ET - While German inflation rose only modestly in April, it doesn't change the view that the European Central Bank will need to tighten monetary policy modestly by mid-year, says Timo Klein, principal economist at S&P Global Market Intelligence. German inflation climbed to 2.9% from 2.7% in March, EU-harmonized data show, following the energy-price surge linked to the Iran war, even as core inflation eased. Inflation is still expected to hover slightly above 3% for much of the remainder of 2026 due to lagged second‑round effects, Klein says in a note. ECB rate hikes ahead will come despite weakening economic activity, as high oil-and-gas prices, disrupted supply chains, and weakened business and consumer confidence weigh on activity, he says. (edward.frankl@wsj.com)
1027 ET - Oil prices climb 5% as stalled negotiations between the U.S. and Iran raise fears of a deeper, longer-lasting energy shock, with no progress reported between Tehran and Washington. "The market is no longer pricing the disruption as a short-lived front-month squeeze," Ole Hansen from Saxo Bank says. Instead of just near-term prices rising, longer-dated contracts have moved sharply higher--2027 is up 25% to $78 and 2028 up 16% to $74. "This points to growing expectations of a prolonged supply shock driven by damaged Middle East infrastructure, lower production capacity, and the eventual need to rebuild depleted commercial and strategic reserves," Hansen says. Brent rises 5.1% to $116.91 a barrel, while WTI is up 5% to $104.94 a barrel. (giulia.petroni@wsj.com)
1020 ET - Yields on U.K. 10-year government bonds, or gilts, could stay elevated until the final quarter of 2026, BNP Paribas rates strategists say in a note. U.K. inflation is expected to rise due to high energy costs, potentially causing the Bank of England to raise interest rates. Investors price in the possibility of two BOE rate rises by September, LSEG data show. High interest rates are likely to keep gilt yields elevated in the coming months, the strategists say. Ten-year gilt yields rise to a one-month high of 5.067%, Tradeweb data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
April 29, 2026 13:32 ET (17:32 GMT)
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