The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1533 ET - Natural gas futures extend their winning streak to three sessions as warmer weather forecasts point to a pick-up in demand. Gains are driven by heat "building across the South and expanding into the East, which raises power-burn expectations and gives the front of the curve a firmer footing after a choppy stretch of spring trade," Gelber & Associates says in a note. "The market is testing whether early season heat can carry through long enough to keep June supported, or whether mild breaks later in the outlook allow supply comfort to reassert itself." Nymex natural gas for June delivery settles up 2.3% at $2.96/mmBtu, up 7.4% from a week ago.(anthony.harrup@wsj.com)
1328 ET - The number of rigs drilling for oil in the U.S. rose by five this week to 415, oil services company Baker Hughes reports. It was the highest oil rig count since November, and up by eight since the start of the U.S.-Iran conflict that closed the Strait of Hormuz and sent oil prices into triple digits. Still, producers have proceeded with caution. With $100 a barrel oil it's profitable to drill anywhere, but producers know that isn't going to last forever, says Gary Cunningham of Tradition Energy. "People know that eventually there will be some type of a resolution with Iran and some type of reopening of the strait." Rigs directed at natural gas slipped by one this week to 128. (anthony.harrup@wsj.com)
1033 ET - The dollar is likely to drift higher but stay within this year's trading ranges, RBC Capital Markets foreign exchange strategist Daria Parkhomenko says in a note. "In the coming months, there isn't a clear reason to sell the dollar, if the dollar is a relatively high-yielder in G-10, there are consistent flows into U.S. assets, and the dollar is a safe haven (even if not on strong footing)." The dollar is also better insulated than Europe and Asia to the energy price shock given the U.S. is a net oil exporter. RBC recommends buying the dollar against lower-yielding currencies in the short term, including the euro and the Swiss franc. (renae.dyer@wsj.com)
1006 ET - Oil prices are little changed, with Brent headed for a weekly loss of more than 7% as hopes for a swift reopening of the Strait of Hormuz have faded. Brent crude is up 2.7% to $108.56 a barrel, while WTI futures rise 2.9% to $99.71 a barrel. At the end of a two-day summit with Chinese leader Xi Jinping, U.S. President Donald Trump said China agreed that the war in Iran should end and ship traffic through the Strait of Hormuz be free. Still, a lack of progress in U.S.-Iran negotiations is making markets nervous. "The longer the Strait of Hormuz remains blocked, the more attention is focused on inventory levels," analysts at Commerzbank say. "If the U.S. Department of Energy's weekly inventory report shows another significant drawdown in U.S. oil stocks, this is likely to support oil prices." (giulia.petroni@wsj.com)
0947 ET - The Swedish krona is likely to appreciate only slightly despite solid economic fundamentals, Commerzbank's Antje Praefcke says in a note. The Riksbank has signalled the possibility of raising interest rates but inflation remains very low so the central bank will likely take its time and wait to see the impact of higher energy prices due to the Iran war, she says. "Moreover, it should not be forgotten that [the krona] will remain vulnerable to setbacks in the event of rising risk aversion." The currency has probably already seen most of its potential to rise for the time being, she says. Commerzbank expects the euro to fall to 10.40 krona by December 2027, from 10.9867 currently. (renae.dyer@wsj.com)
0937 ET - U.S. natural gas futures are higher and on track to post weekly gains, supported in part by a warmer weather outlook and a close-to-normal storage report for last week. Nymex natural gas is up 2% at $2.953/mmBtu. "There isn't a lot of fundamental support for a move to $3," says Gary Cunningham of Tradition Energy in a note. "LNG export numbers continue to be limited by maintenance across multiple facilities, but we have seen pipeline exports to Mexico increase to levels slightly higher than normal for this time of year." (anthony.harrup@wsj.com)
0931 ET - The 1% on-month rebound in Canadian manufacturing sales volumes taken back in line with the 2025 average, while the jump in S&P Global's manufacturing PMI for April bodes well for the near term outlook, says Capital Economics' Stephen Brown. The rise in sales values was unsurprisingly led by petroleum and coal product sales, though Brown says there was genuine strength elsewhere, including a further recovery in motor vehicle sales. Still, the economist says that unless oil prices drop back soon, Canadian manufacturing is likely to be dragged down alongside global manufacturing activity. (robb.stewart@wsj.com; @RobbMStewart)
0931 ET - Excessive volatility in U.K. government bonds could lead the Bank of England to pause gilt sales under its quantitative tightening program, ABN Amro's Bill Diviney says in a note. Yields on U.K. government bonds hit multi-year highs on Friday as political uncertainty and inflation concerns weigh on investor confidence. The BOE could move from active sales of its gilt holdings--which were bought during the era of quantitative easing--to passive roll-off at the review period in September, Diviney says. Ten-year gilt yields surged to 5.170%, a high last reached in 2008, Tradeweb data show. U.K. 30-year gilt yields climbed to 5.852%, a 28-year high, according to LSEG data. (miriam.mukuru@wsj.com)
0908 ET - Oil futures look set to end the week with gains as the Strait of Hormuz remains closed and little progress is seen toward an agreement between the U.S. and Iran to end the conflict, despite Presidents Trump and Xi agreeing the strait should remain a free, open waterway. Prices are gaining "on what we believe is the realization that, while the Chinese leader agreed that Iran must not obtain a nuclear weapon and is likely to buy American oil, the broader geopolitical situation remains unresolved," Peter Cardillo of Spartan Capital says in a note. WTI is up 3.1% at $104.34 a barrel and Brent gains 2.4% at $108.29 a barrel. (anthony.harrup@wsj.com)
0906 ET - Treasury yields creep higher as the Trump-Xi summit yields no apparent breakthrough regarding the war in Iran. Oil prices keep rising, while the WSJ Dollar Index climbs 0.7% to 95.84, its highest level since April. The Empire State manufacturing index jumps to 19.6 in May from 11 in April, versus WSJ consensus of a decline to 7. Industrial production is expected to rebound in April. The 10-year yield is at 4.559%, trading above 4.5% for the first time since July. The two-year is at 4.073%, the highest intraday level in over a year. (paulo.trevisani@wsj.com; @ptrevisani)
0347 ET - European energy stocks trade higher early Friday as oil prices climb on fears of prolonged disruption to energy markets. President Trump's claim that he doesn't need the Strait of Hormuz reopened comes as energy inventories continue to tighten and markets are on edge, MUFG's Soojin Kim writes. Brent futures rise 1.4% to $107.22 a barrel, while WTI trades 1.8% up to $98.63 a barrel. Norway's Equinor moves 2.4% higher. In London, BP rises 1.1% and Shell 0.5%. Spain's Repsol is up 0.7% and France's TotalEnergies is up 0.45%.(adam.whittaker@wsj.com)
0849 ET - Bitcoin falls, driven by broad-based risk aversion and a stronger dollar, Trade Nation's David Morrison says in a note. The lack of any concrete progress at the end of President Trump's visit to China and the ongoing stalemate between the U.S. and Iran weigh on risk sentiment. The dollar is lifted by bets the Federal Reserve could raise interest rates following a batch of higher-than-expected U.S. prices data earlier this week. Meanwhile, the Clarity Act digital assets regulation bill cleared the Senate Banking Committee Thursday. "The legislation still faces several procedural hurdles, including a full Senate vote requiring bipartisan support before heading to House reconciliation and eventual presidential approval," Morrison says. Bitcoin falls 1.1% to $80,500, LSEG data show. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
May 15, 2026 15:34 ET (19:34 GMT)
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