The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1327 ET - The number of rigs drilling for oil in the U.S. is up by two this week at 431 in a sixth straight increase, Baker Hughes reports. Oil rigs are at their highest level in almost a year as the Middle East conflict keeps oil prices high. A consideration for producers is that oil services companies cut their prices when oil prices are low, but will also increase them when oil prices are high, says Andrejka Bernatova, CEO of energy-focused special purpose acquisition company Dynamix Corporation III. "That's why producers are also cautious because they know that services prices are going to increase. You really have to see higher oil prices on a sustained basis before you deploy more capital," she says. Rigs directed at natural gas slipped by one to 124. (anthony.harrup@wsj.com)
1021 ET - U.S. natural gas futures are lower after advancing the previous two sessions on a hotter weather outlook and the report of a below-average weekly storage injection. The inventory data looked particularly supportive for Henry Hub and Nymex futures as storage in the South Central region was 41 Bcf below the year-earlier level, Eli Rubin of EBW Analytics says in a note. "Continued regional tightening--even in the absence of heat--may remain a supportive factor for Nymex natural gas into early summer." Natural gas for July delivery is off 1.7% at $3.278/mmBtu. (anthony.harrup@wsj.com)
1008 ET -- Public Service Enterprise Group says it is planning to lower residential gas heating bills by 5% starting in October, despite climbing gas prices. The energy company says it monitors energy markets and forecasts demand to secure natural gas ahead of peak heating seasons. The long-term planning approach to procuring natural gas helps reduce the company's exposure to market volatility, PSE&G says. PSE&G says it buys much of its supply months or even years in advance. The announcement comes as the war in Iran continues to drive up gas and oil prices. (katherine.hamilton@wsj.com)
1004 ET - The dollar could rise further if Friday's stronger-than-anticipated U.S. nonfarm payrolls encourages new Federal Reserve Chair Kevin Warsh to signal the possibility of raising interest rates, Monex Europe analyst Nick Rees says in a note. The resilience across recent labor market data should increase price growth concerns at the Fed, he says. "That creates a potential headache for Chair Warsh, who many believe was appointed on a promise to cut rates." Assuming next week's inflation data don't undershoot forecasts, the Fed will want to at least signal willingness to raise rates and Warsh will be forced to comply in order to retain credibility, he says. The DXY dollar index rises to a two-month high of 99.717. (renae.dyer@wsj.com)
0929 ET - Oil futures are lower heading into the weekend as the market holds out hopes for U.S.-Iran negotiations to eventually bring about an agreement to reopen the Strait of Hormuz. The market appears more sensitive to occasional bearish war headlines or optimistic comments from President Trump than to the daily loss of supply, Ritterbusch & Associates says in a note. "Holding a long position that would be more appropriate to global oil fundamentals has been extremely difficult throughout the course of this war." WTI is down 0.9% at $92.23 and Brent is off 0.6% at $94.49(anthony.harrup@wsj.com)
0928 ET - Euro-denominated credit spreads have remained relatively steady despite the ongoing Middle East conflict, unlike equities and government bonds which have been volatile. Solid demand for credit assets and healthy corporate balance sheets have supported euro credit performance, Societe Generale's Juan Valencia says in a note. The resilience of credit assets means they are behaving like true safe-haven assets, he says. (miriam.mukuru@wsj.com)
0826 ET - U.K. GDP data due to be released next week could show slight economic contraction in April given the impact of the Middle East conflict, Deutsche Bank's Sanjay Raja says in a note. Due to the energy supply disruption and high oil prices, "the cost of living and the cost of doing business will have likely increased, weighing on activity and investment", he says. U.K. GDP increased by 0.6% in the first quarter that ended in March. "We continue to think activity will remain subdued as the energy shock catches up with households and businesses," he says. (miriam.mukuru@wsj.com)
0757 ET - The European Central Bank would need to signal it could raise interest rates more aggressively than the market expects on Thursday for the euro to recover meaningfully, Commerzbank's Michael Pfister says in a note. "This would be very challenging given expectations of just under three rate hikes this year." The ECB is likely to raise rates on Thursday and could hint at a second rate increase, he says. However, stronger rate-rise signals would require new forecasts to show a significant increase in inflation risks, which seems unlikely, he says. An end to the Iran war would provide a bigger boost to the euro as the ECB is still likely to raise rates, he says. The euro rises 0.3% to $1.1640.(renae.dyer@wsj.com)
0755 ET - Fewer U.K. companies in May expect to increase prices in response the global energy shock, compared to April survey, the latest Bank of England monthly Decision Maker Panel data show. A 57% share of companies expect to increase prices in the May survey, from 64% of companies who expected to raise prices in the April survey. The latest data eases concerns about the risk of firms raising prices and driving up inflation, Barclays' economists say in a note. Investors price in a total of 41 basis points of BOE rate rises in 2026, LSEG data show. (miriam.mukuru@wsj.com)
0652 ET - More investor profit-taking in South Korean stocks would risk destabilizing the won, DBS Group Research's Chang Wei Liang says in a note. That is especially so with Korean exporters not fully repatriating overseas earnings, and oil prices remaining sticky near $100 a barrel, he writes. The won's weakness has been tied to outflows amid profit-taking by foreign investors following the Kospi's more than 90% rally so far this year, the forex and credit strategist notes. With the dollar already rallying past 1,530 won, wobbles in semiconductor stocks could pose another risk, Chang says. Memory-chip heavyweights Samsung Electronics and SK Hynix shed 6.4% and 9.9%, respectively, pulling the benchmark index down 5.5% for the day. (farah.elias@wsj.com)
0624 ET - Crude palm oil ended lower for another session, weighed by persistent weakness in the Chicago soybean oil market, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Recent weakness in export demand is also pressuring prices in the near term, he says. Ng sees prices of palm oil supported above 4,480 ringgit a ton and resistance at 4,750 ringgit a ton. The Bursa Malaysia Derivatives contract for August delivery was 47 ringgit lower at 4,554 ringgit a ton. (tracy.qu@wsj.com)
0616 ET - European investors aren't properly pricing in the risk to growth of the energy shock sparked by the U.S.-Iran war, Bank of America analysts write. Markets are trading on the assumption that the type of demand destruction that has marked most energy shocks in the past won't occur, they say. "We remain negative on European equities, with our macro projections pointing to around [a] 10% downside for the Stoxx 600," they say. Stocks that rise in conditions of economic growth will struggle, whereas defensive stocks--those immune to falls in growth--will outperform, they say. The Stoxx 600 is yet to recover to its prewar highs. The index edges up 0.1%.(josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
June 05, 2026 13:27 ET (17:27 GMT)
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