The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0813 ET - BP CEO Meg O'Neill's first priority is to reduce lost cash flow spent on its liabilities, RBC Capital Markets analyst Biraj Borkhataria writes after attending an analyst meeting with her. The current macroeconomic environment is supportive of this and means the British energy company could meet its net debt target of $14 billion to $18 billion by end 2027 somewhere between the third and fourth quarter of this year, he writes. There is no "big splash" event expected this year where BP plans to set out new targets, he adds. Investor sentiment will be driven by net debt reductions and pruning of the portfolio, he adds. Shares fall 1.4% at 484.50 pence. (adam.whittaker@wsj.com)
0620 ET - Palm oil ended lower. Prices are likely to stay range-bound in the near term, according to Hualian Futures in a research note. Investors are closely monitoring developments in the Middle East, as Trump's recent comments signaled renewed tension between U.S. and Iran. Production of palm oil in Malaysia has been solid in June, they note. The Bursa Malaysia Derivatives contract for September delivery falls 15 ringgit to 4,594 ringgit a ton. (tracy.qu@wsj.com)
0619 ET - The Bank of Canada is likely to leave interest rates on holdindefinitely as policymakers try to support a struggling economy before conditions normalize late this decade, according to a forecast from Canadian think-tank Signal49. The independent forecasting group expects Canada's GDP will grow a meager 0.5% this year, as the country deals with little-to-no population growth and uncertainty over U.S. trade policy. Higher energy prices and low consumer confidence will limit growth in consumer spending, Signal49 says. Excluding infrastructure and defense, government spending will be limited, the group adds. "Broader weakness in Canada's economy should give comfort to the Bank of Canada that the inflation will be temporary," says Signal49. Its forecast period runs until 2030. (paul.vieira@wsj.com, @paulvieira)
0603 ET - U.S. Treasury yields edge higher on the day but stay below Wednesday's multiweek highs reached following renewed military tensions between the U.S. and Iran. The U.S. dollar stays steady as investors aren't yet rushing to buy it as a safe haven. Wednesday's Federal Reserve minutes to the June meeting suggested interest rates could rise in the coming months if inflation accelerates although there was no immediate urgency to act. Policymakers "will not commit to a specific scenario until the incoming data provides necessary clarity," says LPL Financial's Jeffrey Roach. The 10-year Treasury yield rises 1.2 basis points to 4.579%, having hit a seven-week high of 4.597% Wednesday, according to Tradeweb. The DXY dollar index is unchanged at 100.964. (emese.bartha@wsj.com)
0542 ET - Markets are pricing in a higher possibility of the Bank of England increasing interest rates in the coming months following fresh tensions between the U.S. and Iran. The U.S. launched airstrikes on Iran on Wednesday night while Iran attacked ships transiting the Strait of Hormuz. Investors are worried about the Middle East conflict possibly causing oil supply disruptions and creating inflationary pressures. Markets currently price in a total of 31 basis points of BOE rate rises in 2026, up from 23bps priced in early Wednesday prior to U.S. President Trump's announcement that the ceasefire with Iran was over, LSEG data show. (miriam.mukuru@wsj.com)
0458 ET - BP is targeting safe, reliable, cost-efficient operations every day, CEO Meg O'Neill writes on her 100th day leading the British energy major. "Safety comes first, always," she writes. The company was found grossly negligent in the 2010 Deepwater Horizon oil-spill disaster and suffered a fire at an Ohio refinery that killed two workers in 2022. BP is targeting a strong performance, delivered consistently, every quarter, she adds. "I want us to be the most 'predictable' company out there," she says. Her other two priorities are sharper accountability and strong cost and capital discipline. Shares fall 1.6% to 483.25 pence. (adam.whittaker@wsj.com)
0454 ET - The cost of default protection for euro-denominated credit falls as risk appetite improves after oil prices turn lower. Oil prices jumped on Wednesday after President Trump said that the Iran ceasefire was over. Traders are likely to remain cautious given the uncertainty around the U.S.-Iran conflict, ActivTrades Ricardo Evangelista says in a note. The iTraxx Europe Crossover index of euro high-yield credit default swaps falls 5 basis points to 246bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)
0442 ET - Emerging-market economies are forecast to grow at around 3.3% in 2026, a considerable decline from 4.2% growth in 2025, CreditSights' Regis Chatellier says in a note. The impact of the Middle East conflict has been more pronounced on emerging-market economies excluding China, he says. Higher energy prices contributed to a slowdown in business activity in these economies in the second quarter of 2026, Chatellier says. "Economic activity in Eastern Europe is expected to remain subdued due to declining exports - particularly in the automotive sector." (miriam.mukuru@wsj.com)
0407 ET - British energy major Shell should deliver exceptional second-quarter cash flow, which could return its quarterly buyback to $3.5 billion for a period, Berenberg analysts write. In May, it launched a $3 billion buyback. The cash flow will be driven by oil and gas trading, higher commodity prices and strong refining margins, they write. Shell shares have underperformed European peers in the past month and the pullback offers an attractive entry point for investors, they write. Shares fall 0.9% to 3,053 pence.(adam.whittaker@wsj.com)
0359 ET - Sterling rises to a one-year high against the euro and a three-week high versus the dollar as renewed U.S.-Iran tensions boosts expectations that the Bank of England could raise interest rates in response to elevated oil prices. The oil price shock is reinforcing the BOE tightening story, Monex Europe analysts say in a note. "The U.K. inflation problem remains more persistent than in the U.S. or the euro area," they say. The gains also follow a recent easing in U.K. political concerns and the International Monetary Fund upgrading its U.K. growth outlook. Sterling rises to as high as $1.3430 and the euro falls to a low of 0.8516 pounds, LSEG data show. (renae.dyer@wsj.com)
0339 ET - London's miners rise in opening trade after sliding Wednesday following President Trump saying a ceasefire deal with Iran was over. This caused oil prices to jump and revived inflation fears, hitting sentiment and dragging on gold prices. On Thursday, gold prices climb back above $4,100 a troy ounce after Wednesday's selloff, with New York futures up 0.7% to $4,112.10. Gold and silver miner Hochschild Mining rises 3% while peers Fresnillo and Endeavour Mining both increase around 2%. Diversified mining stocks also rise. Glencore and Anglo American climb roughly 3%. Copper miner Antofagasta gains around 3.8%.(adam.whittaker@wsj.com)
0332 ET - Yields on eurozone government bonds and U.K. government bonds, or gilts, fall, reversing some of their steep rise the previous day as oil prices turn lower. Government bond yields rose to multi-week highs on Wednesday due to concerns about high energy prices and inflation risk after President Trump announced that the Iran ceasefire was over. Oil prices jumped but ease back slightly on Thursday. Ten-year German Bund yields fall 1.8 basis points to last trade at 3.067%, Tradeweb data show. Ten-year gilt yields fall 3.1 bps to 4.935%. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
July 09, 2026 08:13 ET (12:13 GMT)
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