The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0920 ET - Oil futures are little changed in early U.S. trading as President Trump arrives in China for a summit with leader Xi Jinping. On the oil front, the IEA says it expects global oil demand to fall by 420,000 barrels a day this year, including a 2.45 million b/d drop in 2Q. OPEC cut its 2026 demand growth estimate to 1.17 million b/d from 1.38 million b/d, while the U.S. EIA sees demand growth of 200,000 b/d. The IEA's expected demand contraction "offsets only about half of the anticipated loss of supply in suggesting a massive drain on global oil inventories," Ritterbusch & Associates says in a note. WTI is off 0.1% at $102.05 a barrel and Brent is down 0.3% at $107.47. (anthony.harrup@wsj.com)
0851 ET - Bitcoin turns marginally lower, remaining in a relatively tight range, as investors await news from high-stakes talks between President Trump and Chinese leader Xi Jinping. Trump has landed in China for the meeting with the Iran war expected to feature high on the agenda. Ahead of the talks, Defense Secretary Pete Hegseth said China has "a lot of leverage" over Iran. Bitcoin falls 0.2% to $80,555 after earlier modest gains, LSEG data. It is "becoming increasingly apparent that $80,000 is developing into a key area, previously resistance but now support," Trade Nation's David Morrison says in a note. A significant break below $80,000 could trigger a bought of profit taking from recent buyers, he says. (renae.dyer@wsj.com)
0849 ET - Rising inflation due to the Iran war is being amplified by a highly-sensitive corporate and consumer landscape, Daniel Harenberg at Oxford Economics says in a note. Following years of economic shocks, business and households are reacting quicker to inflationary news, raising the risk of knock-on price effects. "When inflation attention is high, firms react more sharply to inflationary news and adjust prices faster. Households revise their inflation expectations more readily, fuelling stronger wage demands," he says. Oxford Economics estimates that the oil supply shock could push up inflation across major economies in 2026 by about 0.6 to 0.7 percentage points. This means central banks may need more of a pivot towards tighter monetary policies than markets currently anticipate, Harenberg says. (don.forbes@wsj.com)
0846 ET - The Bank of England could keep interest rates on hold at 3.75% in the coming months, enabling short-term gilt yields to fall, Aberdeen Investments' Matthew Amis says in a note. "If the Strait of Hormuz opens in the coming weeks, then the BOE will not hike rates and the short-maturity gilt yields will have to remove the hikes priced, therefore [meaning] lower yields," he says. Investors hope for a near-term resolution to the Middle East conflict. Markets fully price in two quarter-point BOE rate rises and a 64% chance of a third BOE rate hike by year-end, LSEG data show. Two-year gilt yields are last down 0.6 basis points at 4.516%, Tradeweb data show. (miriam.mukuru@wsj.com)
0758 ET - The dollar could rise further along with Treasury yields in coming days and weeks if there is no resolution to the Iran war and the closure of the Strait of Hormuz, MUFG Bank analysts say in a note. The euphoria surrounding artificial intelligence is a key counter to the risk of an equity market correction that would benefit the dollar, they say. However, the more yields rise on inflation concerns, the AI-related momentum could fade, they say. "So increased volatility on higher yields in the U.S. is a key risk that would likely propel the dollar stronger." The DXY dollar index rises 0.2% to 98.467 after earlier reaching a near two-week high of 98.588. (renae.dyer@wsj.com)
0657 ET - Intertek shareholders could cash in rather than wait for a breakup of the business, AJ Bell's Dan Coatsworth writes. The U.K. testing specialist said it would be prepared to recommend EQT's improved 9.4 billion-pound offer to shareholders if a formal deal was made. The company also paused its review to separate its energy-and-infrastructure business from the group. "Shareholders might feel it is better to take the cash now as there is no guarantee that a breakup of Intertek via a demerger would lead to a quick value uplift," Coatsworth says. Shares are up 6.6% at 56.50 pounds. EQT offered to buy Intertek for 61.077 pounds a share, including a dividend. (ian.walker@wsj.com)
0646 ET - Palm oil prices fell in the Asian session. Upside momentum in prices may be restrained by concerns over rising Malaysian stockpiles and an uncertain demand outlook, despite continued tensions in the Middle East supporting crude oil prices, Kenanga Futures says in a note. The Bursa Malaysia Derivatives contract for July delivery fell 41 ringgit to 4,440 ringgit a ton. (kimberley.kao@wsj.com)
0624 ET - The cost of insuring euro credit against default declines as markets are cautiously optimistic ahead of the U.S.-China summit this week. Investors hope the summit will lead to improved U.S.-China trade relations while they continue to hope for a resolution to the Middle East conflict. The iTraxx Europe Crossover index of euro high-yield credit default swaps falls 3 basis points to 281bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)
0604 ET - Sterling faces renewed falls as a leadership challenge for Prime Minister Keir Starmer remains a risk, MUFG Bank analysts say in a note. The "political turmoil is happening at the worst time given the upturn in global inflation risks due to the conflict in the Middle East," they say. With political uncertainty set to persist and potentially worsen, a period of renewed pound underperformance looks likely, they say. MUFG sees scope for the euro rise above 0.90 pounds if Starmer steps down and a new leader shifts policy to the left. The euro falls 0.2% to 0.8652 pounds after hitting a near three-week high of 0.8697 Tuesday, LSEG data show. (renae.dyer@wsj.com)
0541 ET - High yields on U.K. government bonds, or gilts, could help limit any sterling falls, ING's Chris Turner says. Gilt yields surged and sterling fell Tuesday as pressure mounted on Prime Minister Keir Starmer to resign. The prospect of loose fiscal policy under any new leader is negative for gilts and sterling. However, short-dated yields have more influence on sterling, Turner says. These are driven higher largely by expectations for U.K. interest-rate increases due to inflation risks, which are positive for sterling and help offset political risks, he says. "High yields are probably providing sterling with a little insulation." The euro falls 0.1% to 0.8660 pounds, having hit a near three-week high of 0.8697 Tuesday, LSEG data show. (miriam.mukuru@wsj.com)
0539 ET - U.S. Treasury yields decline as oil prices move lower, stabilizing after Tuesday's rise following a higher-than-expected U.S. April inflation print. Meanwhile, the dollar rises slightly due to safe-haven demand amid continued uncertainty in the Middle East and as the inflation data "reinforced expectations that the Federal Reserve will maintain a cautious stance over monetary policy," says DHF Capital S.A's Bas Kooijman. The 10-year Treasury yield falls 0.8 basis points to 4.463%, according to Tradeweb. The DXY dollar index rises 0.3% to 98.570. (emese.bartha@wsj.com)
0518 ET - Siemens Energy has scope to upgrade its midterm targets as order momentum grows, Berenberg's Richard Dawson and Scott Humphreys write. Management said the targets will be reassessed alongside its full-year results in November. Last year the company raised its midterm targets through 2028. Orders continue to surprise given the strong demand in the U.S. that builds out its backlog and visibility, the analysts say. Shares rise 3.55% to 175.50. (adam.whittaker@wsj.com)
(END) Dow Jones Newswires
May 13, 2026 09:20 ET (13:20 GMT)
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