The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1115 ET - Treasury yields and the dollar deepen their decline as oil prices fall. Brent and WTI are down about 4%, reflecting hopes that the Strait of Hormuz could reopen soon. Meanwhile, U.S. crude inventories plummeted by 7.9 million barrels last week, compared to WSJ consensus of a 3 million draw, keeping inflation concerns top of mind in Wall Street. Investors are likely to scrutinize Fed minutes this afternoon for clues on potential rate hikes. A 20-year Treasury auction is on tap this afternoon. The 10-year yield is at 4.603%, down from 4.653% earlier. The two-year falls to 4.066% from 4.112%. The WSJ Dollar Index slips 0.3%. (paulo.trevisani@wsj.com; @ptrevisani)
1049 ET - Jeff Bezos is bullish on space, but not so bullish that he sees space-based artificial-intelligence data centers being built within three years, as Elon Musk has suggested. Space-based innovation is happening quicker than many realize, but the three-year horizon is "a little ambitious," he says in a CNBC interview. "The question, 'Are data centers in space realistic?' The answer is, 'Yes,'" Bezos says. "The timeline is harder to answer. Some of the timelines you hear are very short. They're probably not right." Musk would probably respond that an ambitious, aspirational timeline is important, Bezos says, but launch costs first need to fall and the proportion of data-center spending on energy needs to rise for the investment to make sense. "Exactly how long it will take, I don't think anyone knows, but it is real, it will happen," Bezos says. (elias.schisgall@wsj.com)
0910 ET - Crude futures lose ground with the market holding out hope for an end to the U.S.-Iran conflict, while reports of some tanker transit through the Strait of Hormuz and the UK's easing of restrictions on Russian diesel and jet fuel offer some relief. Oil prices will likely continue to zig-zag as the continued blockage of the strait contains downward corrections, while "creative methods" for skirting the strait to get oil out limits upside, Ritterbusch & Associates says in a note. "But our stance remains bullish as we still see a big gap between the U.S. and Iran regarding the nuclear issue." WTI is down 2.3% at $101.80 a barrel as the July contract moves to the front of the curve. Brent is down 2.4% at $108.58.(anthony.harrup@wsj.com)
0428 ET - Energean cut its dividend of 10 cents per share but is likely to return to 30 cents per share from the second quarter, Berenberg analysts write. The cut should save just under $40 million, they add. The oil-and-gas company, which has operations in the Eastern Mediterranean, cut the dividend due to impact of the shutdown in Israel, where the conflict stopped production at the Karish gas field for 41 days, they say. Shares fall 1.5% to 873 pence. (adam.whittaker@wsj.com)
0403 ET - Severn Trent's full-year earnings beat expectations as the company upgrades its 2028 guidance, Jefferies analysts Ahmed Farman and Arturo Murua write. Profit before interest and taxes was 2% ahead of consensus while adjusted earnings per share were 4% ahead, they say. Strong delivery over 2026 and confidence in its roughly 150 million pounds of cost efficiencies through 2030 seem to drive the U.K. water company's earnings upgrade, the analysts write. Severn Trent now sees 2028 adjusted EPS of at least 250 pence from 224 pence previously, which implies 5% upside to current market expectations of 238 pence, they write. Shares rise 2.6% to 3,092 pence.(adam.whittaker@wsj.com)
0348 ET - Uniper shares jump 12% in opening trade after the German government federal government said it would slash its stake. The country was forced to bail out the energy company after Russia's full-scale invasion of Ukraine. Uniper was left in the lurch after Germany stopped importing Russian natural gas. Uniper had been the country's largest importer of natural gas from Russia. The government said Tuesday that it would cut its more-than 99% stake to no more than 25%, plus one share, by the end of 2028 at the latest. Uniper welcomed the announcement. Shares trade at 54 euros. (adam.whittaker@wsj.com)
0319 ET - PTT stands to benefit from higher earnings at its gas operations and subsidiaries, Maybank Securities (Thailand)'s Chak Reungsinpinya says in a research report. Its core operations are likely to turn around strongly with 36% gas Ebitda growth expected in 2026, mainly thanks to higher profit at its gas separation plant, the analyst says. The Thai oil and gas company should also enjoy strong earnings contribution from subsidiaries Thai Oil, PTT Exploration & Production, and PTT Global Chemical this year. The brokerage now prefers PTT over PTT Exploration & Production as its energy large-cap exposure. It raises the stock's rating to buy from hold and the target price to 41.00 baht from 31.00 baht. Shares are 0.7% higher at 36.75 baht. (ronnie.harui@wsj.com)
0048 ET - China Suntien Green Energy's earnings could stay weak through 2027 as tariffs for wind-generated electricity and soft plant utilization weigh on profitability, Citi analyst Air Ma says in a note. Citi cuts its 2026-2027 earnings estimates by 37%-38% after lowering assumptions for wind-power tariffs and generation. The bank expects cash flow to improve as capex spending declines from 2027 following completion of major gas projects. Citi cuts its target price to HK$4.20 from HK$5.10 but maintains its buy rating, citing inexpensive valuation. Shares last down 4.8% at HK$3.59. (venkat.pr@wsj.com)
2250 ET - Indian Oil faces sharp downside risks to future earnings from rising retail and LPG losses due to elevated crude prices, Elara Capital analyst Gagan Dixit says in a note. Despite strong 4Q results, IOC's stock will likely be driven more by crude price movements and the scale of government support, the note says. Key risks include crude remaining above $100 a barrel, weak marketing margins and uncertainty over the timing and scale of support. Elara cuts its target price on the stock to 153 rupees from 202 rupees after lowering its FY2027 and FY2028 earnings-per-share estimates. The brokerage maintains its accumulate rating on the stock. IOC shares last closed 2.5% higher at 135.08 rupees.(venkat.pr@wsj.com)
1956 ET - It's "time for some yellowcake on your plate," according to Morgans analyst Chris Creech. The broker initiates coverage on Australia's Paladin Energy, Boss Energy and NexGen Energy, all with buy ratings. The uranium market is now structurally constrained after decades of underinvestment, says Creech. At the same time, "nuclear is emerging as the only scalable, zero‑carbon baseload option," amid decarbonization pressures, energy security concerns and AI‑driven power growth, he says. Morgans puts a 13.05 Australian dollar target on Paladin, which ended Tuesday at A$10.63. Its target on Boss is A$1.55, versus a closing price of A$1.26. It targets A$20.80 for NexGen, which last traded at A$15.52. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1523 ET - Oil futures settle lower in steady trade as President Trump says he's giving some time, maybe a few days and maybe until early next week, for an agreement to be reached with Iran before taking more military action. Traders wary of false starts in previous rounds of talks remain cautious. "A peace deal could reverse prices dramatically, and an opening of the Strait of Hormuz would likely trigger a counter-seasonal long liquidation sell-off throughout the price curve," Dennis Kissler of BOK Financial says. He notes the U.S. also extended sanction waivers for Russian crude exports, "easing tighter supplies into Asia." The WTI contract for June delivery goes off the board at $107.77 a barrel, down 0.8%. Brent falls 0.7% to $111.28 a barrel. (anthony.harrup@wsj.com)
1402 ET - Recent oil price weakness has been due to temporary buffers such as inventory drawdowns, SPR releases and a drop in Chinese imports, says Ben Hoff of Societe Generale. "Oil markets are operating under a veneer of stability, but the underlying system remains acutely stressed," he says in a report. If the Strait of Hormuz reopens in early June, given the logistical lag, end-users aren't likely to see relief until late July at best. Deficits would widen from May as demand recovers faster than supply can respond, he says. "A delay to late June materially worsens the outlook by pushing physical relief into late August and meaningful normalization into September." (anthony.harrup@wsj.com)
(END) Dow Jones Newswires
May 20, 2026 12:20 ET (16:20 GMT)
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