The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1103 ET - U.S. natural gas inventories rose by a little less than usual last week, trimming the storage surplus over the five-year average to 181 Bcf from 185 Bcf the previous week, according to data released by the EIA. Gas in underground storage facilities increased by 41 billion cubic feet to 3,024 Bcf. The injection was smaller than the 45 Bcf five-year average for the week, and below the 44 Bcf estimate in a WSJ survey of analysts. The report does little for Nymex natural gas futures which are off 1.3% at $2.885/mmBtu. (anthony.harrup@wsj.com)
1039 ET - Gold prices briefly drop below $4,000 despite weaker-than-expected U.S. inflation, as a flare-up in tensions between Washington and Tehran raises concerns over high energy prices. New York futures fall 1.2% to $4,002 a troy ounce after slipping to $3,977.10 an ounce earlier. "Persistently high energy prices would make it difficult for the Fed to adopt a more dovish stance," says Fawad Razaqzada from Forex.com. "That is one reason we're seeing the U.S. dollar regain a bit of momentum again today, particularly against currencies whose economies are heavily reliant on imported energy." The U.S. dollar index is up 0.1% to 100.64. (giulia.petroni@wsj.com)
1008 ET - Oil prices are little changed in early U.S. trade, with Brent crude hovering around $85 a barrel and WTI futures at $80 a barrel. "It feels to us that markets are still expecting that the disruption to flows will prove short-lived [...] but the perceived probability of a more extreme outcome has increased," says Neil Shearing from Capital Economics. A key reason prices have not moved significantly higher is that the departure of oil-laden tankers that had been stranded in the Strait of Hormuz for months has provided some near-term relief to supply concerns. Still, inventories cannot continue to absorb supply disruptions at their recent pace indefinitely, the chief economist says. If the strait remains closed for an extended period, oil markets could eventually reach a tipping point, triggering a sharp price spike to $120 a barrel or higher. (giulia.petroni@wsj.com)
1001 ET - U.S. natural gas futures continue to claw back ground after their slide under $3, edging higher for a third session. Market focus is on the EIA's weekly storage report, due at 10:30am ET. Analysts in a WSJ survey expect a 44 Bcf injection, leaving the surplus over the five-year average practically unchanged. The report "has increased significance after three straight bearish readings, although the July 4 holiday raised uncertainty," Eli Rubin of EBW Analytics says in a note. A bullish report relative to consensus estimates "may let August retest $3.00/mmBtu." Nymex natural gas is up 0.4% at $2.935/mmBtu. (anthony.harrup@wsj.com)
0958 ET - Oil futures are higher for a fourth session with the U.S. and Iran continuing strikes and transit through the Strait of Hormuz down to a trickle. The relative calm in energy market volatility comes as participants wait to see whether there's a return to the negotiating table, rounds of broader escalation, or a continued "state of no war and no peace," Samer Hasn of XS.com says in a note. Without a solid agreement including detailed wording on management of the strait and Iran's nuclear program, "the risks of escalation will remain high regardless of market pricing." WTI is up 0.9% at $80.31 a barrel, and Brent is up 1% at $85.76. (anthony.harrup@wsj.com)
0915 ET - The cost of insuring Middle East nations' sovereign debt against default rises as the U.S.-Iran conflict persists. Geopolitical tensions and oil supply disruptions are weighing on investor sentiment. Qatar's five-year sovereign credit default swaps rise 1 basis point to 33bps, S&P Global Market Intelligence data show. Bahrain's five-year CDS climb 6bps to 285bps. (miriam.mukuru@wsj.com)
0707 ET - SSE's business update is a solid statement with strong hydropower output, RBC Capital Markets analyst Alexander Wheeler says in a research note. The U.K energy company continues to deliver on plan with positive news on the installation at offshore wind farm Dogger Bank and a significant ramp-up in networks capital expenditure, Wheeler says. Furthermore, there is potential for further investment opportunity after an update from the U.K.'s power grid operator, the analyst adds. SSE shares trade 2.1% lower at 2,417 pence. (nina.kienle@wsj.com)
0637 ET - Palm ended higher. Overnight strength in rival oils amid escalating U.S.-Iran tensions and concerns over the impact of a super El Nino on future supply likely supported prices, Kenanga Futures writes in a note. The Bursa Malaysia Derivatives contract for October delivery rose 5 ringgit to 4,606 ringgit a ton. (kimberley.kao@wsj.com)
0632 ET - The U.S.-Iran conflict prevents sustained dollar losses after recent lower-than-expected U.S. inflation data, Commerzbank's Thu Lan Nguyen says in a note. Inflationary risks remain as the conflict lifts oil prices, she says. Expectations for the Federal Reserve to raise interest rates should therefore persist for some time, she says. The re-escalation in the Iran war has had a limited impact so far but the longer energy prices stay elevated, the more likely second-round inflation effects become. "As long as the market sees this risk and therefore continues to price in U.S. rate hikes, dollar weakness is likely to remain contained." The DXY dollar index rises 0.1% to 100.537 after reaching a four-week low of 100.353 Wednesday. (renae.dyer@wsj.com)
0630 ET - Shrinking oil inventories have left global markets vulnerable, says Canada's export credit agency. Export Development Canada forecasts oil prices will average around $96 a barrel this year and nearly $84 a barrel in 2027, reflecting ongoing uncertainty and efforts to rebuild depleted stocks as a buffer against future flareups. Stuart Bergman, EDC's chief economist, says storage tanks scattered around the world have become the oil market's "marginal producer."Inventories accumulated before the crisis and emergency stockpile releases have helped offset reduced activity, but at the cost of inventories falling below seasonal norms, Bergman notes. He says a permanent agreement to end the war and restoring ship traffic in the Strait of Hormuz to pre-crisis levels would ease constraints, but oil markets remain tight and vulnerable to further disruptions and price volatility if geopolitical risks escalate. (robb.stewart@wsj.com; @RobbMStewart)
0624 ET - Investors are betting on the Bank of England increasing interest rates in November as the U.K. economy shows resilience. The U.K. monthly GDP rose by 0.1% in May, up from a 0.1% contraction in April."The U.K. economy weathered the rise in energy prices and mortgage rates caused by the Iran war better than we had feared," Berenberg's Andrew Wishart says in a note. The Middle East conflict and inflation concerns are also driving expectations of the BOE raising interest rates. Markets price in a total of 38 basis points of BOE interest rate rises in 2026, with the first quarter-point increase fully priced in for November, LSEG data show. (miriam.mukuru@wsj.com)
0521 ET - U.S. Treasury yields and the dollar edge higher, reversing some of their previous falls. Yields and the dollar fell Wednesday after June U.S. producer price data echoed Tuesday's below-forecast CPI figures. "Together the two reports pulled yields and the dollar lower as inflation concerns abated to some extent," DHF Capital S.A's Bas Kooijman says in a note. Markets will monitor incoming data for confirmation of a sustained trend of slowing inflation. However, ongoing Middle East tensions threaten to push oil prices higher again, he says. The two-year Tresury yield rises 2.8 basis points to 4.155%, while the 10-year yield rises 2.4 basis points to 4.568%, according to Tradeweb. The DXY dollar index rises 0.1% to 100.537. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 16, 2026 11:03 ET (15:03 GMT)
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