The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0821 GMT - Var Energi's BlueNord acquisition supports long-term production, with the deal expected to add around 45,000 barrels of oil-equivalent a day in net production from the Danish Continental Shelf, J.P. Morgan analysts Alejandra Magana and Riddhi Agarwal write. Accumulated post-tax synergies are guided at $250 million-$300 million between 2027 and 2032, driven by financing costs and lower overhead costs. On the back of the acquisition, Var raised its long-term production target to around 450,000 barrels a day from over 400,000 barrels a day and raised its second-quarter dividend and third-quarter dividend guidance to $350 million, an increase of 17%. "We expect 2026 and longer term dividend forecasts to rise and 2027+ production estimates to increase." Var Energi shares rise 5.3% while BlueNord shares climb 6.3%.(dominic.chopping@wsj.com)
0811 GMT - Jonathan Reynolds's reappointment as secretary of state for business and trade is a positive decision by new Prime Minister Andy Burnham, manufacturers organization Make UK says. Reynolds's success will be measured by whether manufacturers see lower costs, fewer trade barriers and a more competitive environment, Make UK CEO Stephen Phipson says. "We stand ready to work with the Secretary of State to make this a reality," Phipson says. (ian.walker@wsj.com)
0804 GMT - Oil prices ease in early trading, leaving Brent back below $90 a barrel as mediators work to push the U.S. and Iran into a new ceasefire. The global oil benchmark is down 1% to $88.32 a barrel, while WTI futures slip 0.7% to $81.91 a barrel. "This won't be an easy task," analysts at ING say. "Large divisions remain between the U.S. and Iran." Meanwhile, Yemen's Iran-backed Houthi militia announced a blockade of Saudi shipping amid a standoff with the kingdom--a development that would severely disrupt supplies, preventing oil flows to Asia from moving south via the Bab el-Mandeb Strait. Still, looking at oil price action this morning, analysts say the market might not be convinced that the blockade will be successful. (giulia.petroni@wsj.com)
0747 GMT - European airlines are facing a challenging environment that will be far worse for those with poorer access to capital, Bernstein analysts Alex Irving and Antoine Madre say in a research note. Dublin-listed Ryanair has higher margins and a stronger balance sheet than its main competitors, the analysts say. The increase in fuel costs, set to hit Ryanair in 2027 and 2028, will hurt its weaker competitors first, they say. The rising fuel prices set the stage for industry capacity cuts, they add. "That raises the risk of industry capacity rationalization near term: either voluntary schedule reductions, or involuntary ones as airlines fall into bankruptcy," Bernstein says. Ryanair shares trade 0.4% lower at 24.69 euros. (nina.kienle@wsj.com)
0747 GMT - Var Energi's deal to buy BlueNord makes industrial and financial sense, SB1 Markets analyst Teodor Sveen-Nilsen writes. For Var Energi, the acquisition is at a favorable valuation, the analyst says. Taking into account estimated synergies of $250 million-$300 million by 2032, SB1 Markets expects that the target price on the stock could increase by 4%-5%. For BlueNord shareholders, the deal lowers the risk surrounding an expected dividend decline from 2027. "We also want to highlight that the companies' cash flow profiles complement each other well." The bank reiterates its neutral rating on Var Energi and a target price of 43 Norwegian kroner for the time being. Var Energi shares rise 4.7% to 45.66 kroner, while BlueNord shares rise 5.5% to 503 kroner. (dominic.chopping@wsj.com)
0738 GMT - Var Energi investors are likely to view the company's deal to buy BlueNord positively, which combined with an outlined dividend increase, will dominate sentiment this morning, RBC Capital Markets analyst Victoria McCulloch writes. Var Energi has announced a combination with BlueNord to create the largest independent oil and gas producer in Europe, with a long-term production target of around 450,000 barrels of oil equivalent, up from over 400,000 barrels as a standalone company, McCulloch says. The transaction will add Danish Continental Shelf assets with stable production and limited near-term investment. Completion is expected around year-end, with BlueNord shareholders receiving 248.4 million new Var shares and 1.96 billion kroner in cash. Var Energi shares rise 5.8% while BlueNord shares rise 6.5%. (dominic.chopping@wsj.com)
0730 GMT - The war in the Middle East is expected to drag on, says Madison Cartwright, economist at CBA. CBA's base case suggests there is a 55% probability that the war will continue at the current intensity for at least the next 2 months, she adds. After two months, CBA expects that a diplomatic outcome will become more viable, and a deal to open the Strait of Hormuz can be negotiated. CBA assigns just a 15% probability to a diplomatic breakthrough and new ceasefire in the next two months.There is a 30% risk that the war escalates further in the next two months, she adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)
0729 GMT - Bitcoin rises to a one-month high as risk appetite improves on hopes for a de-escalation in the U.S.-Iran conflict. Mediators were working Monday to push the U.S. and Iran into a new ceasefire, The Wall Street Journal reports. It comes after the U.S. carried out a ninth straight night of attacks, Iran retaliated against U.S. Arab allies, including Kuwait and Bahrain, and another two vessels in the Strait of Hormuz were hit by projectiles. Bitcoin rises to a high of $65,956, LSEG data show. (renae.dyer@wsj.com)
0726 GMT - China Modern Dairy is likely to swing to profit in 2026 as industry fundamentals improve, DBS Group Research analysts say in a note. Raw milk prices are on track to recover to around 3.10 yuan per kilogram by year-end, compared with contract prices of roughly 3.02 yuan a kilogram in 2Q, they say. Fair-value losses on biological assets should narrow to 2 billion yuan or less from 3.1 billion yuan in 2025, lifting China Modern Dairy's earnings, they add. The analysts project 2026 revenue growth of 5% on year and a turnaround to 169 million yuan in profit from a 1.1 billion yuan loss last year. DBS maintains its buy rating and a target price of 1.70 Hong Kong dollars. Shares rise 8.7% to HK$1.25.(megan.cheah@wsj.com)
0720 GMT - Ratch Group stands to benefit from some catalysts, CGS International's Rasmiman Sermprasert says in a research report. These include an assumed power-purchase-agreement extension for the Thai company's Ratchaburi power plant beyond 2027 and full consolidation of the Hin Kong power plant from 4Q 2025, the analyst says. Also, Thailand's Power Development Plan is expected to be a key medium-term catalyst for the independent power producer, thanks to rising power demand from electric vehicles and data centers. The brokerage lifts its net-profit forecasts for Ratch Group by 22% for 2026, 37% for 2027, and 24% for 2028. It raises the stock's rating to add from hold and the target price to 45.00 baht from 29.00 baht. Shares are 1.3% higher at 38.50 baht. (ronnie.harui@wsj.com)
0705 GMT - The dollar falls slightly as hopes that the U.S. and Iran will agree a new ceasefire improve risk appetite and cause oil prices to ease. Mediators were working Monday to push the U.S. and Iran into a new ceasefire after Washington carried out a ninth straight night of attacks and Iran retaliated against U.S. Arab allies, The Wall Street Journal reports. However, the situation remains highly uncertain and the foreign exchange market has become less sensitive to geopolitical developments, instead focusing more on monetary policy. Markets have recently scaled back expectations for U.S. interest-rate rises following lower-than-expected inflation data last week.The DXY dollar index falls 0.1% to 100.902. (renae.dyer@wsj.com)
0650 GMT - Nordic markets are seen opening slightly higher, with IG calling the OMXS30 up 0.1% at around 3137. The memorandum of understanding for peace between the U.S. and Iran has collapsed and the conflict now largely revolves around control of the Strait of Hormuz, SEB's Maya Westerlund writes. U.S. stocks closed slightly lower as risk appetite stayed weak, while Asian markets are mostly higher with Japan's Nikkei rising sharply after being closed Monday. Stock market futures indicate a positive opening in the U.S. but a weaker start in Europe. Donald Trump is imposing 50% tariffs on several Canadian goods. OMXS30 closed at 3134, OMXN40 at 2676.94 and OBX at 1888.80. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
July 21, 2026 04:21 ET (08:21 GMT)
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