The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1018 GMT - 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)
1014 GMT - 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)
0834 GMT - 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)
0830 GMT - 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)
0824 GMT - 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)
0822 GMT - 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)
0820 GMT - 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)
0805 GMT - Israel and Iran's latest hostilities threaten the past weeks' conflict balance, but Julius Baer sticks to its cautious view and sees oil prices heading lower after the summer. Beyond the geopolitical noise, the oil market is resilient and has digested the supply shock well for now, says Norbert Rucker, head of economics and next generation research. Several vessels transited Hormuz over the weekend, Rucker says in a note. A greater degree of trade pragmatism is mirrored in the different bilateral deals concluded between Gulf-locked sellers and mostly Asian buyers with Iran, he says. While the current hostilities could lift hesitance in the short term, common interests, and especially the profit opportunity, should keep these transits growing over time, he adds. (monica.gupta@wsj.com)
0754 GMT - Zijin Mining Group seems more cautious toward overseas mergers and acquisitions given the challenging geopolitical landscape, says Citi Research's Jack Shang in a note. At the Chinese miner's annual general meeting, Chairman Zou Laichang said that competition in the metals and mining industry is becoming fiercer amid rising geopolitical risks and resource nationalism, the Citi analyst says. Zijin also seems to be prioritizing stable operations and delivering its production guidance, he says. These suggest that its stance toward overseas M&A is more prudent, Shang adds. However, the company likely still has appetite for overseas expansion, he says, citing conversations with several executives. Citi sees Zijin Mining's shares as undervalued and retains its buy rating and target price of HK$51.80. Shares drop 4.1% to HK$31.60. (megan.cheah@wsj.com)
0719 GMT - Europe's blue-chip stock indexes slide at the open on higher oil prices and an extended selloff in AI-related stocks. Escalation in the Middle East weighs on the energy-intensive aerospace and defense sector--down 2.6%--as the Europe-wide Stoxx 600 falls 0.9%. The German DAX falls 1.25% as industrials falter, with Siemens and Rheinmetall down 2.2% and 1.9%, respectively. In Paris, the CAC 40 slips 0.8%. Defense group Safran falls 2.9%, while carmaker Stellantis slides 2.8%. Oil majors cushion losses for the FTSE 100 in London, down 0.3%. Investors continue to turn on technology stocks, dragging the semiconductor-heavy AEX down 0.9% in Amsterdam. ASML falls 2.4%. Italy's FTSE MIB falls 0.4%, with losses limited by a 9.5% surge for Banca MPS amid takeover reports. The Spanish IBEX 35 is down 0.5%. (josephmichael.stonor@wsj.com)
0635 GMT - Ryanair's future profitability depends largely on either lower fuel costs or reduced airline capacity across the industry, Bernstein analysts Alex Irving and Antoine Madre say in a research note. When fuel prices rise significantly, airlines such as the Irish budget carrier typically respond by cutting flights or exiting the market altogether, the analysts say. This reduction in capacity often allows airlines to charge higher ticket prices, helping restore profitability, they add. Ryanair is well positioned to benefit from either scenario, Irving and Madre say. Lower fuel prices would directly reduce costs, while industry-wide capacity cuts could support higher fares, they add. (nina.kienle@wsj.com)
0634 GMT - Nordic markets are seen opening lower with IG calling the OMXS30 down 1.5% at around 3070. The U.S. jobs figure took the oxygen out of stock exchanges on Friday, SEB's Dana Malas writes. The jobs market continues to show strength, and the market now expects the Fed to hike by 0.25 percentage points to 4.00% before year-end, Malas says. At the same time, the Hormuz crisis remains unresolved and tensions in the Middle East escalated over the weekend after Iran fired missiles at Israel. The Israeli military said this morning it has retaliated by firing missiles of its own. Stock markets in Asia are lower but U.S. equity market futures are pointing slightly higher. OMXS30 closed at 3116.40, OMXN40 at 2654.99 and OBX at 1949.42. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
June 08, 2026 06:19 ET (10:19 GMT)
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