The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1041 ET - Most major Gulf stock markets edge lower as geopolitical tensions continue to weigh on sentiment. The Dubai Financial Market General Index leads the decline, falling 1.5%. Saudi Arabia's Tadawul All Share Index and Qatar's QE index each lose 0.7%, and Abu Dhabi's benchmark index slips 0.1%. Dubai is more sensitive to shifts in sentiment because of its heavier weighting toward real estate and banks and its larger retail-investor presence, says Mazen Abou Ismail at FFA Private Bank Dubai. Recent falls in oil prices are offering limited support to regional equities as markets assess ongoing geopolitical risks, he says. (farhan.rafid@wsj.com)
0922 ET - Treasury yields rise after initial jobless claims come in at 199,000 versus the WSJ consensus of 204,000, suggesting a healthy labor market. Meanwhile, oil prices edge higher amid talks to reopen the Strait of Hormuz. A separate report from outplacement firm Challenger, Gray & Christmas finds that U.S.-based employers announced 33,429 job cuts in July, down 27% from cuts announced in June. The 10-year yield is at 4.65%, slightly higher than yesterday's close of 4.62%. The 2 year-yield is at 4.22%, also slightly higher than yesterday's close of 4.12%.(jessica.coacci@wsj.com)
0817 ET - Crude futures are higher as the market awaits the outcome of talks to reopen the Strait of Hormuz after Iran said it has agreed with Oman on a shipping route through the waterway. TP ICAP's Scott Shelton sees the likelihood of a fragile agreement "which I would argue is priced here for crude," as flows through the strait will recover "but not to the extent where the market gets swamped with oil." The market would also still need a risk premium for the possibility of a deal failing "relatively quickly," while not addressing the diesel shortage, he says in a note. WTI is up 0.8% at $75.83 a barrel and Brent climbs 1% at $80.28.(anthony.harrup@wsj.com)
0457 ET - Harbour Energy's second-half free cash flow will be hit by Norway and U.K. tax payments, J.P. Morgan analysts Alejandra Magana and Riddhi Agarwal write. The company has guided for free cash flow of around $1.8 billion over the year but delivered this in the first-half. This means cash flow over the remainder of the year will be broadly neutral, they write. Shares rise 7% to 248.4 pence.(adam.whittaker@wsj.com)
0425 ET - Harbour Energy investors will want to know if there is further upside to returns, Jefferies analysts write. The company upgrades its free cash flow guidance to around $1.8 billion but already delivered this over the first half of the year. The company plans to return a minimum of $800 million to shareholders over 2026. This comes after it was able to capture the higher oil and gas prices with a strong operational performance, they write. Shares rise 7% to 248.4 pence. (adam.whittaker@wsj.com)
0346 ET - Harbour Energy posts a positive first-half update as integration of the LLOG portfolio in the U.S. helps deliver record production, Berenberg analysts write. Production growth coincides with a supportive macroeconomic backdrop that is driving cash flow and cutting net debt, they write. The energy company is also making good progress on longer-term growth projects, especially in Mexico and Argentina, they say. Harbour bought Louisiana-based LLOG Exploration in a $3.2 billion deal last December. Shares rise 3.7% to 241 pence.(adam.whittaker@wsj.com)
0328 ET - Harbour Energy is delivering operational excellence as first-half earnings demonstrate the benefits of the rapid integration of its U.S. assets, Barclays analyst Lydia Rainforth writes. With conflict in the Middle East pushing oil and gas prices higher, Harbour has upgraded its free cash flow guidance. It has also launched a $250 million buyback for 2026 and has scope for further returns later in the year, she says. Shares rise 3.7% to 241 pence. (adam.whittaker@wsj.com)
2049 ET - Beach Energy's mini share-price rally over the past month is snuffed out by FY 2027 guidance that misses the mark. Beach falls 3.9% to A$0.855, pitching it back toward nine-year lows. Beach is targeting output of between 19.5 million and 23.0 million barrels of oil equivalent in FY 2027. At the midpoint, that would represent growth of 9.5% on the 19.4 million barrels of oil equivalent produced in FY 2026. Beach also forecast capital expenditure of A$600 million-A$700 million in FY 2027. "Production and cost guidance for FY27 was a modest miss across the board with all costs coming in higher than expectations, and production weaker at the mid-point," says RBC Capital Markets analyst Gordon Ramsay. (david.winning@wsj.com; @dwinningWSJ)
1504 ET - Oil futures end little changed in a choppy session as Iran says it has agreed with Oman on a shipping route through the Strait of Hormuz, but that safe passage will depend on third parties not obstructing the process, an apparent reference to the U.S. "The deal to open the Strait of Hormuz just got closer to reality," Mizuho's Robert Yawger says in a note. "Perhaps the biggest question is whether Iran's Islamic Revolutionary Guard Corps are on board with the agreement," he adds, noting that IRGC breached the June agreement by shooting at ships in the strait. WTI settles down 0.7% at $75.22 a barrel and Brent inches up 0.1% to $79.45 a barrel. (anthony.harrup@wsj.com)
1445 ET - U.S. natural gas futures edge up in rangebound trading ahead of the EIA's weekly storage report. Comfortable storage levels, with inventories more than 6% above the five-year average, have kept a lid on prices even with hot summer weather driving power-sector demand for gas. Analysts in a WSJ survey expect a 31 Bcf storage build for last week, which would extend the inventory surplus to 193 Bcf from 185 Bcf the week before. "A result below 30 Bcf could offer prices some support, but an in-line or larger build would reinforce the market's focus on elevated storage as summer demand approaches its seasonal decline," Gelber & Associates says in a note. Nymex natural gas settles up 0.2% at $2.688/mmBtu.
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