The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1002 ET - The Swedish krona falls to a near four-week low against the euro as the Riksbank's policy decision Thursday didn't provide any new information, Commerzbank's Michael Pfister says. Sweden's central bank left rates unchanged at 1.75% and said a rate rise later this year remains a possibly, but this "essentially reiterated what they said last time," he says. "Some market participants were hoping for two rate hikes this year, this is probably now off the table." Moreover, higher oil prices and risk aversion are probably weighing on the krona amid ongoing U.S.-Iran tensions, he says. The euro rises 0.6% to a high of 11.0877 krona, LSEG data show. (renae.dyer@wsj.com)
0912 ET - Maersk and Hapag-Lloyd appear fairly priced for sustained higher freight rates, Deutsche Bank analyst Harishankar Ramamoorthy writes. Container shipping companies posted strong second-quarter results, as they benefited from the high rates. Deutsche Bank says the key question now is how long could freight rates remain elevated. "We believe the rest of 2026 could see higher rates prevail, but incremental supply in 2027 and a potential Red Sea reopening should be headwinds." The bank retains its hold rating on both Maersk and Hapag-Lloyd. It raises its Maersk target price to 17,123 Danish kroner from 14,030 kroner, and raises its Hapag-Lloyd target to 117 euros from 114 euros. Maersk shares fall 0.1% to 20,720 kroner, Hapag-Lloyd shares fall 1.8% to 133.70 euros. (dominic.chopping@wsj.com)
0907 ET - U.S. natural gas futures are lower ahead of the EIA's weekly inventory data due at 10:30 a.m. ET, which are expected to show a smaller-than-average injection into storage. "After last week's bearish EIA storage surprise, however, last week's hot weather and a potential 'make-up' create chances for a bullish figure relative to a 13 Bcf-19 Bcf consensus," Eli Rubin of EBW Analytics says in a note. "While South Central heat is supportive of natural gas prices, the sharp CDD [cooling degree day] retreat into the end of summer nationally may yield near-term softening." Nymex natural gas is down 1.8% at $2.764/mmBtu.(anthony.harrup@wsj.com)
0853 ET - Oil futures extend their rally after President Trump said the U.S. will impose unprecedented economic measures on Iran, with economic consequences for any country that allows any type of lifeline to Iran. Financial support for Iran basically means buying their oil, and that would involve China, Scott Shelton of TP ICAP says in a note. "I worry a bit about unintended consequences, however, as this could mean the Chinese buy even less total oil from the market, cut runs even more, and export even less." Most-active WTI is up 3.6% at $87.43 a barrel and Brent rises 3.1% to $94.47. (anthony.harrup@wsj.com)
0736 ET - Oil prices extend earlier gains, with Brent crude rising above $94 a barrel. Concerns about stalled talks to reopen the Strait of Hormuz and end the Iran war have pushed the geopolitical risk premium higher, with President Trump saying Wednesday that he would launch a major economic campaign against Tehran and any entity that does business with the regime. In early U.S. trade, Brent climbs 2.8% to $94.23 a barrel, while WTI futures are up 3.2% to $87.07 a barrel. (giulia.petroni@wsj.com)
0655 ET - Middle East crude exports fell sharply last week, with flows averaging 6 million barrels a day through Aug. 16, down 2.2 million barrels a day from the previous week, according to Morgan Stanley. Tanker traffic through the Strait of Hormuz has weakened further. Outbound energy-vessel transits are averaging just four a day this week, down from six last week, while inbound traffic has held at six. Both remain far below preconflict levels of 25 to 30 vessels a day in each direction. Alternative routes are offering limited relief. Saudi Arabia's Yanbu port crude loadings remain around 2 million barrels a day, with most cargoes moving north through the Sumed pipeline. Flows through Bab el-Mandeb strait are below 1 million barrels a day, though Morgan Stanley says those figures could be revised in the coming days due to so-called "dark transits." (giulia.petroni@wsj.com)
0518 ET - British company Ithaca Energy can return more to shareholders even after raising its full-year dividend guidance, BofA analyst Cian Evans-Cowie writes. The company will now target a dividend of $500 million to $530 million, from $470 million to $520 million. Higher production from organic growth projects and a cashflow-linked payout policy could push the dividend higher, he says. Shares rise 2.5% to 264 pence. (adam.whittaker@wsj.com)
0459 ET - The euro could rise modestly further against the dollar after the U.S. Treasury announced increased buybacks of long-term debt, ING's Chris Turner says in a note. The announcement should bring in a slightly more encouraging, or at least stable, investment environment, he says. High natural gas prices in Europe remain a worry but the dollar could extend its losses, he says. Foreigners are also buying a lot of eurozone debt and equities so the positive euro narrative of diversification away from the U.S. remains present, he says. The euro might struggle to break above $1.1700 in the short term, but if it does it could reach $1.1790, he says. The euro rises to a three-month high of $1.1693, according to LSEG.(renae.dyer@wsj.com)
0401 ET - The Swedish krona falls after the Riksbank left interest rates unchanged at 1.75% as expected and refrained from sending stronger signals about the possibility of raising interest rates amid geopolitical uncertainty. The Riksbank reiterated that a rate rise later this year remains possible but there is "considerable uncertainty and developments call for vigilance." In addition to the Iran war, there are several other risks that could affect the outlook for inflation and economic activity such as high equity valuations of U.S tech companies, the sustainability of several countries' public finances, unpredictable U.S. trade policies, the Ukraine war and the summer's drought, the central bank said. The euro rises 0.2% to 11.0391 krona from 11.0152 before the announcement. (renae.dyer@wsj.com)
0359 ET - Oil prices extend gains for a fifth consecutive day after President Trump said he would launch a major economic campaign against Iran, signaling further escalation and little hopes for an imminent deal. In early European trading, Brent crude is up 1.6% to $93.08 a barrel, while WTI futures rise 1.5% to $85.67 a barrel. "The U.S. has no talks planned with Iran, while the Strait of Hormuz situation remains tense, with limited traffic and ongoing disagreement around reopening conditions," analysts at Sucden Financial say. "This keeps an energy-risk premium in the market and limits how far investors can price out inflation risk, even as today's Treasury announcement gives risk assets some breathing space." (giulia.petroni@wsj.com)
0258 ET - Bitcoin stays elevated after reaching an 11-week high overnight after President Trump urged Congress to pass a crypto regulation bill and the U.S. Treasury announced increased buybacks of long-term bonds. Trump asked lawmakers to pass a "fair version of the Clarity Act" which has stalled in the Senate. His commitment to keeping the U.S. ahead in digital assets and openness to considering recommendations around additional government bitcoin accumulation reduce regulatory uncertainty which has constrained institutional participation, Zaye Capital Markets analyst Naeem Aslam says in a note. The Treasury's buyback announcement pushed yields lower, while consecutive bitcoin exchange-traded inflows strengthened institutional demand, he says. Bitcoin rises 1.1% to $69,831 after reaching as high as $69,994 overnight, LSEG data show. (renae.dyer@wsj.com)
0244 ET - The Swedish krona trades steady against the euro ahead of the Riksbank's policy decision at 0730 GMT. Sweden's central bank is likely to leave its policy rate unchanged at 1.75%, Commerzbank's Antje Praefcke says in a note. Since no sustained easing of the Middle East conflict is in sight and energy prices remain elevated, the Riksbank could reiterate the possibility of future rate rises and wait to see how the situation developments, she says. Until new forecasts are published at the end of September, the Riksbank is under no pressure to act, she says. "All in all, today's interest-rate meeting should be neutral for the krona." The euro trades flat at 11.0158 krona.
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