The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0921 ET - U.S. natural gas futures lose ground on lower temperature forecasts for the second half of June and higher production. The July contract "ran into a bearish weekend trifecta of milder weather forecasts, weak LNG and rising supply," Eli Rubin of EBW Analytics says in a note. Speculators pared back short positions in the week ended June 2, while adding to long positions, he notes. "While a short-term top may be in near $3.39/mmBtu, unexpected bullish catalysts could trigger a run higher and threaten a wider short-covering event." Nymex natural gas is down 2.8% at $3.139/mmBtu.(anthony.harrup@wsj.com)
0855 ET - Oil futures pull back from highs after President Trump urges Israel and Iran to stop their strikes and Iran says it has ended its retaliatory attacks on Israel. The renewed outbreak of fighting between Iran and Israel sent prices soaring overnight on concerns that it could derail efforts to bring the Middle East conflict to an end. Trump posted that peace negotiations are proceeding, and said the blockade of the Strait of Hormuz will remain in effect until a "Final Deal" is reached. WTI is up 1.4% at $91.78 a barrel and Brent is 1.8% higher at $94.73. (anthony.harrup@wsj.com)
0810 ET - The dollar turns lower after President Trump said Israel and Iran are looking to agree to an immediate ceasefire after the two sides traded fire. In a Truth Social post, he also said negotiations towards a peace deal are proceeding, "subject to ignorance or stupidity getting in its way." He said "things should move quickly" regarding a final deal but the U.S. will maintain its blockade of Iranian ports until that happens. The DXY dollar index falls 0.2% to 99.888 after reaching a two-month high of 100.214 earlier. (renae.dyer@wsj.com)
0634 ET - The European Central Bank is facing a difficult inflation shock, driven more by external energy prices than domestic overheating, KBRA's Ken Egan says in a note. "Credibility matters and some tightening may be justified to anchor expectations, but rates can be a blunt tool against a supply shock, particularly when growth momentum is weak," the senior director for sovereigns of the global credit rating agency says. Banks and households still look relatively resilient, but confidence is fragile, and the risk is that an energy shock tilts toward stagflation if policy overcorrects, he says. (emese.bartha@wsj.com)
0630 ET - BP's management team need to set out their ideal capital structure and identify growth drivers, Barclays analyst Lydia Rainforth writes. New CEO Meg O'Neill also needs to announce the leaders of the new upstream and downstream divisions, she writes. As part of this process, O'Neill will need to define the future of the low carbon business which has been a source of suboptimal investments and still needs careful management, Rainforth adds. Shares rise 1.2% to 552.30 pence. (adam.whittaker@wsj.com)
0618 ET - BP shares have significant upside potential if management can execute its simplification strategy, Barclays analyst Lydia Rainforth writes. The sudden departure of Chairman Albert Manifold shouldn't distract from the success management has had so far, she adds. The leadership team recognizes change is needed and want to accelerate the strategy, Rainforth says. New CEO Meg O'Neill has made an impressive start to her tenure by opting to reset the company into upstream and downstream divisions, she adds. Shares rise 1.2% to 552.30 pence. (adam.whittaker@wsj.com)
0614 ET - Palm oil ended higher as crude oil prices rose amid escalating Iran-Israel tensions fueling concerns over Middle Eastern supply disruptions. Despite the rise in the session, Nomura expects palm oil prices to fall slightly this week due to worries of higher palm oil supply going forward, anticipating prices to fall to 4,500 ringgit a ton by June 11. However, if the Middle East conflict escalates, CPO prices could rise to 4,600 ringgit a ton, the analysts note. The Bursa Malaysia Derivatives contract for August delivery ended 19 ringgit higher at 4,573 ringgit a ton. (sherry.qin@wsj.com)
0434 ET - Elevated gilt yields signal greater concerns about inflation risk, rather than fears about weak growth, eToro's Lale Akoner says in a note. "Markets are looking past softer economic data and focusing instead on the risk that higher energy prices will keep inflation pressures alive." Ten-year gilt yields hit 4.955%, a near three-week high, LSEG data show, following renewed attacks between Israel and Iran over the weekend. (miriam.mukuru@wsj.com)
0430 ET - OPEC+ could begin unwinding the 2 million barrels per day of official cuts agreed to in October 2022 once voluntary reductions are fully reversed, though market dynamics might complicate that path, Rystad Energy says. Once the Strait of Hormuz reopens and flows normalize, the market is expected to see the return of OPEC+ supply, stronger U.S. shale production, and weaker demand after a prolonged period of elevated prices, says Rystad's Jorge Leon. In the near term, that excess supply could be absorbed through rebuilding strategic and commercial inventories. But once restocking is complete, a structural surplus may re-emerge, potentially forcing OPEC+ back into coordinated production cuts. The key challenge will be maintaining cohesion: discipline is easier in tight markets than when rising supply forces members to decide who shoulders the burden of restraint, says Leon. (giulia.petroni@wsj.com)
0424 ET - Markets' pricing of three interest-rate hikes by the European Central is "stretched," ING rates strategists say in a note. However, they argue that now isn't the time to push back against it. "In fact, we even believe Thursday's meeting could leave us with a hawkish aftertaste," they say. A 25-basis-point rate hike is fully priced for Thursday, with further two raises expected by February 2027, according to LSEG. As oil remains at elevated levels for longer, potentially even creeping back to $100 on the recent intensification of the conflict, "we think markets will continue to add to the hawkish narrative," the strategists say. They expect a more dovish market turn only if second-round effects prove to be relatively benign later this year. (emese.bartha@wsj.com)
0422 ET - Gold is likely to benefit from continued central-bank buying, which appears to be the strongest structural force in the precious metal markets, says Carsten Menke at Julius Baer. Central bank buying should continue for another three to five years given emerging economies' desire to be less dependent on the dollar as a reserve currency and a below-average share of gold in their reserves, he says in a note. While volatility may remain elevated as long as the Iran war lasts, and concerns of U.S. monetary policy tightening persist, Julius Baer still sees a favorable fundamental backdrop for gold and remains constructive on the precious metal. (monica.gupta@wsj.com)
0420 ET - The cost of insuring euro-denominated credit against default climbs as market sentiment deteriorates due to renewed attacks between Israel and Iran. Investors fear that the Middle East conflict could escalate, causing oil prices to stay high and pushing up global inflation. "President Trump's pronouncements on an imminent deal look more and more irrelevant as his war takes on a life of its own," IG's Chris Beauchamp says in a note. The iTraxx Europe Crossover index of euro high-yield credit default swaps rises 5 basis points to 268bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
June 08, 2026 09:21 ET (13:21 GMT)
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