The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0834 ET - U.S. natural gas futures continue under selling pressure with inventories well above average and LNG demand softer due to terminal maintenance. The U.S. natural gas market remains focused on summer weather to drive demand, with little near-term benefit from the rise in global prices brought on by escalation in Middle East conflict. "Notable weather weakening over the past 24 hours for weeks 2 and 3-particularly over the central and eastern U.S.--may further undermine physical support in late July," Eli Rubin of EBW Analytics says in a note. Nymex natural gas is down 1% at $2.868/mmBtu. (anthony.harrup@wsj.com)
0747 ET - Oil futures add to yesterday's gains as the U.S. continues military strikes against Iranian targets and Iran attacks vessels crossing the Strait of Hormuz. "I believe we are now in a round of negotiating under fire, following the failure at the table after the signing of the recent Memorandum of Understanding," Samer Hasn, senior market analyst at XS.com says in a note. A return to a ceasefire with more precise language concerning management of the Strait of Hormuz isn't unlikely, he says. But President Trump's assertions that the U.S. will charge a 20% fee on cargos crossing the strait to cover costs of protection "cannot be taken seriously because they are completely unrealistic." WTI is up 2% at $79.72 a barrel and Brent is up 3.3% at $86.04. (anthony.harrup@wsj.com)
0650 ET - BP delivered a solid quarterly performance that reflects how it can capture gains in prices through its operating businesses and in volatility through its trading arm, BNP Paribas analysts say in a research note. The U.K. energy major had another exceptional quarter in oil trading, and expects an uplift of about $2.5 billion from prices, according to BNP Paribas. This is helping BP reduce its net debt to between $22 billion and $23 billion, the analysts say. In a positive sign, the expected debt reduction comes despite working-capital inflows being lower than BNP Paribas had estimated, they add. This points to a reduction of between $6 billion and $7 billion in financial liabilities, BNP Paribas says. BP shares rise 2.3%.(adria.calatayud@wsj.com)
0621 ET - The cost of insuring European bank bonds against default increases as renewed U.S.-Iran conflict causes market sentiment to worsen. On Monday the U.S. continued attacks on Iran and reinstated the blockade on Iranian trade in the Strait of Hormuz. Iran responded with attacks on oil tankers in the Strait of Hormuz. Investors are grappling with rising geopolitical tensions, XTB's Kathleen Brooks says in a note. The iTraxx Europe Sub Financial index of European subordinated bonds issued by financial institutions rises 1 basis point to 90bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)
0615 ET - U.S. Treasury yields rise as fresh military escalation in the Middle East pushes oil prices higher, reigniting inflation concerns. President Trump announced the reinstatement of the blockade on Iranian shipments in the Strait of Hormuz. "Treasury yields remained at elevated levels with inflation concerns returning as oil prices rose to a month-high amid the increase in geopolitical tensions," Exness' Krisada Yoonaisil says in a note. The dollar falls, however, as investors await U.S. inflation data at 1230 GMT, followed by Federal Reserve Chairman Kevin Warsh's Congress testimony. The 10-year Treasury yield rises 1.4 basis points on the day to 4.623%, having earlier hit an eight-week high of 4.636%, according to Tradeweb. The DXY dollar index falls 0.2% to 101.075. (emese.bartha@wsj.com)
0550 ET - The cost of insuring euro-denominated credit against default climbs as escalation in the Middle East conflict lowers appetite for risk assets. The U.S. and Iran continued attacks in the Middle East for the third consecutive night, causing oil prices to jump and market sentiment to deteriorate. The iTraxx Europe Crossover index of euro high-yield credit default swaps rises 3 basis points to 252bps, S&P Global Market Intelligence data show. The iTraxx Europe Main index of euro investment-grade CDS climbs 1bp to 53bps. (miriam.mukuru@wsj.com)
0539 ET - BP's better-than-expected performance in the second quarter and a large decline in net debt bode well for its shares ahead of the company's next strategic developments, Santander analysts say in a research note. The U.K. energy major's second-quarter update showed a strong performance across all divisions, the analysts say. Continued volatility in energy prices could remain a source of trading opportunities for BP in the coming months, they add. The situation in the Middle East and its implications for BP's strategy, alongside any guidance from new CEO Meg O'Neill on next moves, will be at the top of investors' minds when the company reports full earnings on Aug. 4, according to Santander. BP shares rise 2.3%. (adria.calatayud@wsj.com)
0524 ET - Markets increase their expectations of the Bank of England raising interest rates due to a jump in oil prices as the Middle East conflict intensifies. The U.S. continued attacks on Iranian sites while Iran said it struck oil tankers on the Strait of Hormuz. "Surging oil prices reignited inflation and rate hike concerns," Saxo analysts say in a note. Markets price in a total of 45 basis points of BOE interest rate increase in 2026, 18bps higher than last week's pricing, LSEG data show. (miriam.mukuru@wsj.com)
0452 ET - A quarter of the European Union's electricity generation came from solar power in June, a new monthly high for the renewable source, according to a study published by think-tank Ember. That made solar the largest single source of power for the month, ahead of nuclear and gas, Ember says. Solar has grown from just 10% of the total in the same month five years ago as EU members step up the pace of solar-panel installation, the study shows. In sunny Spain, a European leader in solar and other renewables, sun-power produced more than a third of electricity last month, Ember adds. "In just a few years solar has gone from a small player to an essential part of Europe's power system, as governments and citizens look for low-cost, quick-to-install domestic power sources," Ember analyst Chris Rosslowe says. (joshua.kirby@wsj.com; @joshualeokirby)
0447 ET - BP investors are cheering its work to slash debt, as the U.K. energy company shifts its focus back to oil and gas, AJ Bell's Dan Coatsworth says. "One of the key worry points for investors over BP is its balance sheet. In that context, it's not a surprise to see significant debt reduction get a warm reception," Coatsworth says. While continuing volatility in energy markets makes forecasting the near-term outlook for the industry difficult, BP's move away from renewables and back toward hydrocarbon operations looks set to continue, he says. BP's charges of around $1 billion in its gas and low-carbon energy transition businesses and Shell's agreement to sell an Indian renewables business reinforce the trend, according to Coatsworth. BP shares rise 2.4%. (adria.calatayud@wsj.com)
0438 ET - BP could shoot through its debt-reduction target a year early, thanks to rapid progress in the second half, RBC Capital Markets' Biraj Borkhataria and Adnan Dhanani say in a research note. The U.K. energy major estimates it ended the second quarter with net debt ranging from $22 billion to $23 billion, which compares with $25.3 billion as of March 31. BP is targeting net debt of between $14 billion and $18 billion by the end of 2027, but RBC estimates the company could reduce its net debt to around $8 billion by year-end. "This should coincide with BP presenting a refined corporate plan and medium-term outlook, in our view," the analysts add. Shares rise 2.6%. (adria.calatayud@wsj.com)
0433 ET - BP could be laying the groundwork for more asset sales with its latest write-downs of about $1 billion in its transition businesses, RBC Capital Markets' Biraj Borkhataria and Adnan Dhanani say. The U.K. energy major disclosed the charges in an update that otherwise showed a strong performance in the second quarter, the analysts say in a research note. "Call it pre-divestment window dressing...better to take the hit now than show explicit value destruction at the point of sale," the analysts say. "We believe both LightsourceBP and Archaea could face the chopping block--although not formally announced by the company as far--and see no place for either in BP's portfolio long term." BP shares rise 3.2%. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
July 14, 2026 08:34 ET (12:34 GMT)
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