The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0243 GMT - Palm oil rises in early Asian trade, driven by stronger soybean oil prices overnight on the Chicago Board of Trade, PhillipCapital says in a note. Stronger export data are also seen supporting CPO prices, it adds. Malaysia's palm oil exports for Aug. 1-10 are estimated to have risen 9.2% from the same period last month, according to cargo surveyor AmSpec Agri Malaysia. PhillipCapital expects prices to face resistance at 4,780 ringgit a ton and find support at 4,433 ringgit a ton. The Bursa Malaysia Derivatives contract for October delivery is up 14 ringgit at 4,737 ringgit a ton. (yingxian.wong@wsj.com)
0201 GMT - While the Democratic Republic of Congo's ban on copper-concentrate exports is unlikely to have a major impact on global supplies, it "has injected fresh bullish impetus into an already buoyant market," says BMI, a unit of Fitch Solutions. Copper prices are already trading around record highs and the near-term trajectory points to further possible gains, BMI says. "Copper is being buoyed by positive sentiment towards the global economy as hopes of a deal between the U.S. and Iran are renewed, intense stocking up on the Comex as U.S. tariff risks mount, a slightly weaker U.S. dollar in recent days, and the DRC's announcement--despite its minimal material impact on physical trade," it says. LME three-month copper is up 0.2% at $14,190 a metric ton. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0125 GMT - Coronado Global Resources posts a deeper-than-anticipated 1H loss due to higher net interest costs, lower-than-expected tax benefits, and an additional impairment related to its Logan mine sale, says Barrenjoey. Coronado's net loss of US$418 million compares with a consensus estimate of US$305 million. Revenue and Ebitda are in line with the bank's expectations, although Ebitda misses consensus, it says. The coal miner hasn't provided any commentary regarding 2026 volume and mining-cost guidance. Two Glencore off-take/prepayment agreements provide additional liquidity lever, it adds. Barrenjoey has a neutral rating and target of 30 Australian cents/share on the stock. Shares are down 13% at 16.5 Australian cents. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0041 GMT - Jarden pares its medium-term dividend outlook for Contact Energy as it adjusts to it possibly becoming involved in data centers. Contact has agreed with CDC Data Centres to assess a potential data center at Stratford, New Zealand. The companies plan to seek resource consent for a 250-megawatt data center near the site of Contact's closed Taranaki Combined Cycle gas power plant. Jarden notes Contact's FY 2027 dividend guidance of NZ$0.42/share represents a 101% payout on a trailing cash flow basis. "To account for potential equity co-investment in large-scale digital infrastructure, we have prudently reduced our dividend payout assumption from FY28 onwards to 80% of four-year trailing per-share cash flow, at the bottom end of Contact's 80-100% target range," analyst Grant Swanepoel says. (david.winning@wsj.com; @dwinningWSJ)
2339 GMT - Oil futures edge lower in early Asian trade on a likely technical correction after the futures' strong gains overnight. However, oil futures' losses will probably be limited by dimming hopes of a swift deal to reopen the Strait of Hormuz, a key waterway through which one-fifth of the world's oil is transported. President Trump has adopted a wait-and-see stance regarding the Iran war that would give financial sanctions and a U.S. naval blockade of Iranian ports more time to inflict economic harm on the Middle Eastern country, the WSJ reported, citing U.S. officials. Front-month WTI crude oil futures are 0.1% lower at $82.08 per barrel. (ronnie.harui@wsj.com)
1935 GMT - U.S. natural gas futures rise as near-term weather forecasts add heat to the outlook, LNG feedgas rises and continuing conflict in the Middle East feeds global supply concerns. Natural gas balances are more supportive, "with elevated cooling demand and export flows nearly matching available supply despite production remaining historically strong," Gelber & Associates says in a note. "Cooling demand should still soften as temperatures retreat toward seasonal norms later in the month, but the warmer revision reduces some of the downside risk that had weighed on prices last week." Nymex natural gas settles up 5% at $2.794/mmBtu.(anthony.harrup@wsj.com)
1855 GMT - Oil futures post gains as Iran's latest demands on the U.S., including a military withdrawal, unfreezing of Iranian assets and payment of reparations, are seen prolonging the closure of the Strait of Hormuz. "This list of demands seems more like a child's wish list to Santa Claus than anything grounded in reality," Phil Flynn of the Price Futures Group says in a note. While Iran tries to give the impression it's calling the shots, lower oil prices at the back of the curve suggest the market is unconvinced the strait will be a lasting problem, he adds. "The near-term risk is tight diesel and heating oil supplies heading into winter." WTI settles up 5.1% at $82.13 a barrel, and Brent rises 5% to $87.72. (anthony.harrup@wsj.com)
1818 GMT - Diesel futures are outpacing gains in crude oil as attacks on refineries in Russia by Ukraine and in Saudi Arabia by Houthis add to concerns about the continued closure of the Strait of Hormuz. "The refinery attacks have taken substantial amounts of diesel off the market with global benchmarks rallying strongly," Mizuho's Robert Yawger says in a note. "Unless there are big breakthroughs in the peace process around both conflicts, large amounts of diesel will remain shut in." ICE gasoil is up 9.9% at $1,316 a metric ton and Nymex diesel is up 7.2% at $4.1817 a gallon.(anthony.harrup@wsj.com)
1749 GMT - Treasury yields and the dollar keep rising as markets see nearly equal chances of a Fed hike or hold in September. The dollar strengthens nearly 1% against the yen, despite officials' efforts to prop up the Japanese currency. The lasting U.S.-Iran standoff over the Strait of Hormuz pushes Brent crude up 4% to $87, rekindling inflation fears that could bolster the case for an interest rate increase. The 10-year yield reaches 4.701% and the two-year is at 4.239%. The WSJ Dollar Index rises 0.2%. (paulo.trevisani@wsj.com; @ptrevisani)
1713 GMT - Oil futures extend gains as Iran's latest demands, seen as unacceptable to the U.S., reduce hopes for a quick reopening of the Strait of Hormuz. "Most traders feel near term, tighter supplies are more probable for longer," Dennis Kissler of BOK Financial says in a note. "Still, the economic pressure of the U.S. blockade, if it's enforced, could squeeze the hardliners of the regime possibly more than U.S. strikes on their military infrastructure." WTI is up 4.2% at $81.43 a barrel and Brent is 4.1% higher at $87.01 a barrel. (anthony.harrup@wsj.com)
1607 GMT - Celestica's $3.45 billion equity raise materially de-risks the electronics manufacturing services company's AI ramp-up with long-term permanent capital, says CIBC's Todd Coupland. The analyst notes that proforma cash rises to $3.9 billion, compared with $740 million of debt, bringing its liquidity to $5.7 billion including the recently upsized revolver. "This removes any funding constraints and supports faster scaling into hyperscaler and AI-native demand," he says. All the while, the analyst sees Celestica "in positive revision territory" as visibility, customer breadth and share gains improve. So far, the analyst estimates that its customers include Google, Meta and Amazon, and says that "at least two new customers/platforms, OpenAI and AMD Helios, [will] each contribute more than 10% of revenue." (adriano.marchese@wsj.com)
1437 GMT - Yields on U.K. and eurozone government bonds rise as oil prices advance due to lack of progress in U.S.-Iran peace talks. The lack of a resolution to the Middle East conflict is pushing up oil prices, Charles Schwab strategist Joe Mazzola says in a note. Investors are concerned about the risk of prolonged oil supply disruptions which could push inflation higher. The price of Brent crude rises 2.6% to $85.72. Ten-year gilt yields rise more than 6 basis points to a 6-day high of 4.988%, LSEG data show. The ten-year Bund yield rises 4.2 bps to 3.173%.
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