The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1444 ET - Finning International is showing a strong earnings trajectory that National Bank of Canada analyst Maxim Sytchev says "is getting better and higher." Sytchev upgrades the stock to outperform from sector perform, with a new C$115 target up from C$89, arguing it has become "too painful on the sidelines." He points to a record backlog, broad-based booking strength, and growing equipment populations in Canada and Latin America that solidify the product support tail. Sytchev also cites other reasons to be bullish, including "more friendly CAD resource development," emerging data-center demand in Alberta, and Argentina potentially becoming "a more meaningful contributor vs. current 6% to 7% of the top line over time." (adriano.marchese@wsj.com)
1401 ET - Finning International is entering a product support cycle that could be lucrative for the heavy-machinery dealer. In a report, Scotiabank's Jonathan Goldman says product support "could surprise to the upside this year" with consensus forecasting 4.6% growth for the segment in 2026, while "management PSU targets are based on +5.1% to +6.6%." Goldman notes that Canada should "pick up the slack from South America," with the Canadian truck population rising from 400 to 500 between 2023-2025 and another 50 to 60 expected to be delivered in 2026. Those trucks are starting to require regular maintenance, meaning Canada's product support growth should exceed oil sands production growth of greater than 2%-4%, Goldman says. Finning International up 7% to C$103.40. (adriano.marchese@wsj.com)
1327 ET - Recent data show the U.S. economy gaining strength despite oil around $100 a barrel and gasoline averaging near $4.50 a gallon, Arlan Suderman of StoneX says in a note. Gasoline prices are in the middle of the historical range when adjusted for inflation reflecting today's buying power, he says. "The two things that consumers notice and complain about first and foremost are rises in food and fuel prices. Yet, in this case, they continue to spend because they have the money to do so." The U.S. consumer still has buying power, and "the economy continues for now to show impressive strength amid the stresses of the Iran war," Suderman says. (anthony.harrup@wsj.com)
1323 ET - Valvoline's stock lost recent gains following a strong F2Q performance, Mizuho says, pointing to reported shortages across the motor oil and lubricant industry. The analysts say multiple social media posts from operators and experts highlight disruptions across the motor oil supply chain due to the Iran war. The analysts expect private operators to increase prices, as Valvoline has already done so. Valvoline holds adequate supply for now and the lower end of its outlook accounts for possible supply shortages, the analysts say. Valvoline is down 2.2%.(katherine.hamilton@wsj.com)
1046 ET - Nebius is tracking ahead of its own expectations for power capacity. The AI infrastructure company says during a call with analysts that it's now targeting at least 4 gigawatts of contracted power this year. Nebius had previously said it was targeting more than 3 gigawatts by the end of the year. Nebius also announces a new site in Pennsylvania to support 1.2 gigawatts of power once fully operational. This is the company's second owned gigawatt-scale site in the U.S., executives say. Nebius surges 16%. (katherine.hamilton@wsj.com)
1044 ET - Nebius says strong demand for its AI infrastructure products is allowing the company to raise prices. Demand is continuing to exceed available capacity, allowing the company to raise prices in the latest quarter, Chief Revenue Officer Marc Boroditsky tells analysts on a call. Nebius is still selling out across all chip types, even at the higher prices, Boroditsky says. Demand is also resulting in longer contract durations, increasing contract values and more prepayments, he says. These factors are improving Nebius's working capital position and giving it more flexibility around external financing needs, he says. (katherine.hamilton@wsj.com)
1043 ET - Oil futures haven't risen further despite a deepening supply shock linked to the near-closure of the Strait of Hormuz, though a prolonged blockade could pave the way for sharper gains, says Alex Kuptsikevich from FxPro. "The price of a barrel of Brent at around $105 seems too low," the chief market analyst says. "Moreover, there is now almost no difference between futures and spot prices, whereas at the start of April the spread exceeded $30." Kuptsikevich says the market has so far relied on several buffers, including large global stockpiles--particularly in China--alongside stronger U.S. exports and alternative shipping arrangements by Gulf producers. "Nevertheless, the oil shortage created by the closure of the Strait of Hormuz is laying the foundations for future price growth," he says. "Time is on the side of the Brent bulls." (giulia.petroni@wsj.com)
1030 ET - Crude futures return to positive territory after the International Energy Agency said the oil market is set to remain in deficit until the final quarter of the year. Brent is up 0.1% to $107.93 a barrel, while WTI futures gain 0.4% to $98.91 a barrel. The Paris-based agency now forecasts global oil demand to contract by 420,000 barrels a day this year, from previous expectations of an 80,000-barrel-a-day decline. OPEC cut its demand growth forecast to 1.17 million barrels a day from 1.38 million previously. "Oil is in a race against time," says Alex Kuptsikevich from FxPro. "The longer the Strait of Hormuz remains blocked, the greater the chances of higher Brent and WTI prices in the longer term." Meanwhile, traders await a high-stakes summit between President Trump and Chinese leader Xi Jinping. (giulia.petroni@wsj.com)
0951 ET - U.S. natural gas futures are higher, fluctuating from one day to the next as the market weighs fading heating demand against a gradual pickup in cooling needs. "The lower price environment in 2026 is leading to higher utilization of gas-fired generation assets across the country, increasing gas consumption on a weather-normalized basis," Andy Huenefeld of Pinebrook Energy Advisors says in a note. "Demand from this sector looks poised to continue outpacing year-ago levels, which could limit storage growth into the peak summer months." Nymex natural gas is up 2.5% at $2.914/mmBtu. (anthony.harrup@wsj.com)
0934 ET - The summit between President Trump and Chinese president Xi is not expected to create any sort of breakthrough in the U.S.-Iran stalemate, says Citi Research in a note. It expects "intermittent disruptions" to continue for shipping on the Strait of Hormuz for the next 4-8 weeks. "There is the potential for Iran to prolong disruption for revenue and leverage, and we do not anticipate the Trump-Xi summit to alter this trajectory," says the firm. Citi is keeping its outlook for oil prices elevated, with physical supply struggles expected to be a factor in negotiations. (kirk.maltais@wsj.com)
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)
(END) Dow Jones Newswires
May 13, 2026 14:44 ET (18:44 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments