The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1951 ET - Oil falls on more signs of increased supply amid easing Middle East tensions. The supply has surged in recent weeks, ANZ Research analysts say. They cite a media report quoting a U.S. official as saying that American military support has helped boost oil flows to more than 10 million barrels a day. Also, "the U.S. and Iran arrived for peace talks in Doha, with U.S. negotiators saying progress in indirect talks with Iran had been made," the analysts say. "This eased concerns that a return to conflict between the two sides would disrupt the movement of oil through the Strait of Hormuz," they add. Front-month WTI crude oil futures are 0.8% lower at $68.04 per barrel. (ronnie.harui@wsj.com)
Lessons from the stifling of energy shipments through the Strait of Hormuz are likely to drive M&A activity in the oil and gas industry, says Macquarie. It expects producers of LNG to be particularly sought after. "Oil price normalization presents new opportunities for acquirers," Macquarie says. It notes Australia's Santos trades at a 14% discount to the mid-2025 offer from a consortium led by Abu Dhabi National Oil Co. unit XRG. "Any new approaches must be at a higher level now," Macquarie says. Santos is due to report 2Q metrics this month. Macquarie forecasts 2Q output of 23.7 million barrels of oil equivalent, slightly below consensus expectations for 24.3 million barrels. Quarterly revenue is projected to be US$1.55 billion. Santos ended Wednesday at A$7.19. (david.winning@wsj.com; @dwinningWSJ)
1552 ET - U.S. natural gas futures are stuck in a range as this week's hot weather lifts cooling demand, while abundant production and inventories keep a lid on gains. Weekly storage data due tomorrow from the EIA are expected to show an increase in the surplus over the five-year average. "Although we look for a stretch in the surplus to around 160 Bcf or more, we still expect this increase to be negated within a couple of weeks by temperatures that will likely remain above average into the middle of this new month," Ritterbusch & Associates says in a note. Analysts in a WSJ survey see an injection of 81 Bcf, compared with a five-year average storage build of 64 Bcf. Nymex natural gas settles down 1.7% at $3.220/mmBtu. (anthony.harrup@wsj.com)
1534 ET - Crude futures post back-to-back losses as ships move through the Strait of Hormuz while the U.S. and Iran continue talks though mediators. The market is focusing mostly on the supply side, while demand expectations are also weak for this year, says Marcus McGregor, head of commodities research at investment management firm Conning. If the agreement with Iran sticks and there are no more disruptions, inventories should rebuild rapidly, he says. "We entered this year thinking that we saw weakness in the second half, even before the situation took place in Iran. With things quieting down, I think we're back to that kind of narrative again, that we're looking at inventory builds in the second half of this year and definitely softer prices as we head into 2027." WTI settles down 1.3% at $68.58 and Brent falls 1.9% to $71.57. (anthony.harrup@wsj.com)
1110 ET - U.K. stocks have favorable valuations and provide diversification from AI investments, Helen Jewell, International CIO, fundamental equities at BlackRock says at their 2026 midyear outlook media roundtable. The U.K. equities market has stocks in the commodities sector, energy sector, and big banks which look attractive, she says. U.K. stocks look underpriced because they have been left out of the AI rally, Jewell says. (miriam.mukuru@wsj.com)
0947 ET - U.S. natural gas futures tick lower, holding in their recent range as supplies are seen adequate to meet strong power-sector demand from above-normal temperatures across much of the U.S. "Temperatures continue to ramp up across the Midwest and East, with the hottest days of this event still ahead," Andy Huenefeld of Pinebrook Energy Advisors says in a note. The heat is expected to peak Friday and Saturday, before reverting closer to normal for the remainder of the two-week forecast, he adds. Nymex natural gas is off 0.7% at $3.251/mmBtu. (anthony.harrup@wsj.com)
0904 ET - Oil futures are lower as the market removes some more risk premium with the U.S. and Iran continuing to pursue a deal and tankers moving through the Strait of Hormuz. "Physical market weakness, Brent's contango structure, rising exports from Iran and record Russian shipments point to improving global supplies," analysts at Kotak Neo say in a note. "Improving supply flows and expectations of a sizeable global surplus remain the dominant bearish drivers, while any disruption to Hormuz traffic or breakdown in diplomatic negotiations could quickly revive geopolitical risk premium and support crude prices." WTI is off 1.1% at $68.74 a barrel, and Brent is down 1.5% at $71.84 with the September contract moving to the front of the curve.(anthony.harrup@wsj.com)
0636 ET - Increasingly powerful artificial intelligence tools won't inevitably translate to faster economic growth, OpenAI Chief Economist Ronnie Chatterji says at the ECB Forum on central banking in Sintra. Without innovation, investment and adaptation at all levels of the economy, higher output is likely to face bottlenecks, he says. Chatterji gives the example of the pharmaceutical industry, which may be able to speed up drug discovery with the use of AI, but will still face manufacturing, infrastructure, testing and regulatory hurdles. Where possible, policymakers and organizations should work to ease these bottlenecks, he says. "We could have amazing intelligence, super-capable intelligence. I would argue even today it's super capable, but... a big piece of GDP growth comes through accelerating innovation," Chatterji says. (don.forbes@wsj.com)
0635 ET - Europe will have a big role to play in the next stage of the artificial intelligence economy, OpenAI Chief Economist Ronnie Chatterji says at the ECB Forum on central banking in Sintra. Europe has lagged the U.S. in foundational AI research, but the next stage of innovation lies in diffusion across the economy, Chatterji says. Here, Europe could have a competitive advantage, with its deep network of industrial firms, research institutions and sector expertise able to capture significant value further down the AI value chain. Chatterji notes companies such as BBVA, Deutsche Telekom, and Orange as examples of companies that are adopting AI aggressively. Sectors such as finance, consulting, insurance, manufacturing and robotics are key areas where AI adoption could boost growth, he says. (don.forbes@wsj.com)
0624 ET - Glencore is a compelling and increasingly unique investment case because it is positioned to benefit from current market conditions while growing its copper portfolio, Berenberg's Richard Hatch and Jasper Mainwaring write. The commodity giant's legacy assets, such as coal and oil, combined with its marketing division, generate cash that can fund shareholder returns and help double copper output by 2035, they write. The market doesn't fully appreciate the strength of Glencore's copper growth story, which the analysts say is de-risked because it expands existing mines. The copper growth is also strategically timed to capture higher prices due to supply deficits, they write. Shares fall 0.3% to 512.20 pence.(adam.whittaker@wsj.com)
0607 ET - Palm oil ended higher, supported by positive sentiment arising from the start of Indonesia's B50 biodiesel mandate program, says David Ng, a trader at Kuala Lumpur-based Iceberg X. The mandate requires a 50% palm-based blend. Stronger export performance also supported market sentiment, Ng says. Ng sees prices supported above 4,500 ringgit a ton and resistance at 4,680 ringgit a ton. The Bursa Malaysia Derivatives contract for September delivery rose 11 ringgit to 4,557 ringgit a ton. (kimberley.kao@wsj.com)
0540 ET - BP shareholders and potential investors will need to decide whether sitting through continued upheaval and uncertainty is worth it, RBC Capital Markets analyst Biraj Borkhataria writes after another senior executive intends to leave. Deputy CEO Carol Howle's planned departure adds to the list of changes at the top of the British energy major, he adds. BP's deleveraging story was clear and powerful when oil was priced above $90 a barrel, he adds. This helped distract from broader uncertainty and changes across the business, he says. These becomes a little tougher to ignore with oil prices at $73 a barrel, he says. BP's shares fall 1.8% to 458.45 pence. (adam.whittaker@wsj.com)
(END) Dow Jones Newswires
July 01, 2026 19:51 ET (23:51 GMT)
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