The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1136 ET - The Suez Canal and Egypt's Sumed pipeline--which transports crude from the Red Sea to the Mediterranean Sea--have enough spare capacity to handle additional Saudi oil exports if disruption at the Bab el-Mandeb Strait forces shipments onto alternative routes, according to HSBC. The bank estimates the combined infrastructure could accommodate nearly 4 million barrels a day of extra crude oil flows. Rerouting cargoes through Suez would lengthen journeys and increase costs, while also requiring large oil tankers to transfer their cargo to smaller vessels or offload part of their crude into the Sumed pipeline and pick it up in the Mediterranean. Still, "it can all be done in our view, and the oil industry is no stranger to ship-to-ship transfers," analysts at HSBC say. "The global shipping industry has proven resilient and able to adapt to disruptions over the past few years." (giulia.petroni@wsj.com)
1050 ET - Yields on U.K. 10-year government bonds, or gilts, rise to a two-month high due to concerns about the potential impact of the Middle East conflict as well as uncertainty surrounding domestic fiscal policy. Investors worry that rising oil prices could push up inflation and cause the Bank of England to increase interest rates in the coming months. Uncertainty around fiscal policy under a new U.K. government is also causing investors to price in a risk premium into gilts. Ten-year gilt yields rise around 3 basis points to a two-month high of 5.065%, Tradeweb data show. (miriam.mukuru@wsj.com)
1043 ET - Oil prices slightly trim earlier gains as investors closely watch developments in the Middle East amid escalating attacks between the U.S. and Iran and threats to Red Sea shipping by the Houthi rebels. In early U.S. trading, Brent crude is up 3.4% to $94.11 a barrel after reaching $95, while WTI futures rise 3.2% to $87.01 a barrel. President Trump said on a social-media post on Wednesday that the U.S. would "bomb and destroy one bridge or power plant" any time Iran targets a ship in the Strait of Hormuz. Meanwhile, the Houthis's announced maritime blockade on Saudi Arabia has already affected commercial behavior in the Red Sea, with several tankers altering course or pausing their voyages as owners assess the security situation, according to Kpler. (giulia.petroni@wsj.com)
1006 ET - GE Vernova raised its full-year free cash flow outlook to between $11.5 billion and $12.5 billion, up from $6.5 billion to $7.5 billion, after a slew of slot reservations for its gas-powered equipment in 2Q. The company says slot reservation agreements grew to 116 gigawatts from 100 gigawatts, and are now on track to hit 125 gigawatts by the end of the year. Year-to-date, the company has generated about $10 billion in free cash flow which is 2.5 times more than it did in 2025, CEO Scott Strazik says on a call with analysts. "We expect our free cash flow in the first half of the year to be substantially higher than the second half, as many of these slot reservations convert to orders," CFO Ken Parks says on the same call. (dean.seal@wsj.com)
1002 ET - HSBC sees value in long-dated U.S. inflation-protected Treasurys, or TIPS, strategist Dhiraj Narula says in a note. Yields on TIPS are now at multi-decade highs. "The surge in real rates in recent weeks notably contrasts with the collapse in inflation breakeven spreads, which have remained low despite the uptick in oil prices amid renewed geopolitical tensions in the Middle East," the strategist says. The key reason for this is the more decisive messaging on price stability from several Federal Reserve members, emphasising a commitment to the 2% inflation target, he says. HSBC maintains a neutral duration--a measure of a bond's sensitivity to interest-rate changes--position on nominal U.S. Treasurys. (emese.bartha@wsj.com)
0931 ET - Siemens Energy shares' sharp drop following GE Vernova's quarterly results isn't justified, JPMorgan analysts write. Shares in the gas turbine manufacturer fell by as much as 9% as investors worry about whether the orders its U.S. peer announced are binding, the analysts say. The read-across to Siemens Energy is unwarranted as the German group is more focused on confirmed orders, they say. Moreover, GE Vernova's expanded capacity has raised concerns about oversupply--but JPMorgan analysts continue to see demand outstripping supply through 2028. "Evidently, demand is still very strong and supply is still materially too low versus demand, for now at least." Siemens Energy pares losses to fall 4.8%, while GE Vernova shares fall 5% premarket. (josephmichael.stonor@wsj.com)
0928 ET - U.S. natural gas futures gain in early trading, while are still holding in a range under $3 per million British thermal units. "This apparent standoff between the bulls and the bears reflects short-term temperature outlooks that are only slightly skewed in a bullish direction," Ritterbusch & Associates says in a note. The weather-driven cooling demand isn't enough to offset an expected expansion in the storage surplus which could reach 200 Bcf, the firm adds. "But we are also leaving open the possibility of a significant tightening in supply next month if LNG exports can pick up again amid what could still prove to be an exceptionally hot summer." Nymex natural gas is up 1.3% at $2.903/mmBtu. (anthony.harrup@wsj.com)
0920 ET - HSBC retains its end-2026 forecast for the 10-year German Bund yield at 2.80%, strategist Chris Attfield says in a note. The current level is 3.185%, according to LSEG. Ten-year Bund yields are more likely to track moves in two-year German debt than in 10-year U.S. Treasurys, he says. As such, European Central Bank policy will be crucial for this expectation of lower 10-year German yields, "although yields will doubtless continue to be buffeted by developments in the Middle East," Attfield says. "In our view the curve will continue to be driven from the short end in the coming month." (emese.bartha@wsj.com)
0917 ET - GE Vernova's explosive order growth in 2Q from its power and electrification businesses are counterbalancing a slowdown in its wind unit tied to tariff uncertainty. Orders in the wind unit were down 40% organically, sinking segment revenue by 10%. The U.S. market for new onshore equipment remains soft, and the company is still watching to see what happens with President Trump's 232 tariffs that would weigh on wind development, CEO Scott Strazik says on a call with analysts. It remains difficult to forecast when U.S. orders will turn around in light of the tariff situation and persistent permitting delays faced by customers, CFO Ken Parks says. (dean.seal@wsj.com)
0848 ET - The dollar could remain little affected by the latest bout of U.S. trade uncertainty in the near term, MUFG Bank's Derek Halpenny says in a note. President Trump's plans for new tariffs should broadly replicate the Section 122 tariffs which are due to expire on Friday, meaning the currency implications should be limited, he says. Moreover, it comes at a time when markets are pricing in U.S. interest-rate rises and Middle East risks are higher, providing some support to the dollar, he says. However, if trade uncertainty becomes more pronounced, dollar selling could re-emerge as investors become more concerned over unpredictable policies and the damage to the U.S. economy, he says. The DXY dollar index trades flat at 101.135. (renae.dyer@wsj.com)
0834 ET - Oil futures extend their gains as the U.S. and Iran continue strikes and U.S. Secretary of State Marco Rubio said Iran isn't serious about peace talks. His comments come after President Trump said Tuesday that the U.S. isn't interested in a meeting until Iran is ready to meet in a meaningful way. "This, combined with the opening of new fronts, will likely prompt a wave of speculators to chase prices higher, potentially pushing Brent crude above the triple-digit levels," says Peter Cardillo of Spartan Capital. WTI is up 3.2% at $87.06 a barrel and Brent is 3.6% higher at $94.29. (anthony.harrup@wsj.com)
0833 ET - Little evidence of indirect energy effects in the U.K's inflation print suggests the Bank of England will keep rates on hold next week and likely beyond, HSBC economist Chris Hare says in a note. Inflation fell to 2.6% in June from 2.8% in May, driven by motor-fuel prices and particularly diesel, although core inflation held steady at 2.6%, above consensus expectations. The first evidence of indirect energy effects would come into food inflation, which eased, and there is no evidence of higher wages and price setting emerging so far, he says. However, for the BOE, higher oil-and-gas prices in recent weeks pose additional upside risks to the inflation outlook, he says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
July 22, 2026 11:36 ET (15:36 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments