The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0216 GMT - The potential initial-public offering of Sembcorp Green Infra could boost parent company Sembcorp Industries' valuation by 5%-10%, says DBS Group Research's Pei Hwa Ho in a note. The Indian renewables subsidiary filed for an India IPO which could raise up to 37.50 billion rupees, with proceeds earmarked for debt repayment, the analyst says. She reckons Sembcorp Green Infra could support a low-to-mid-teens percentage fair multiple, citing its established scale, secured growth pipeline and profitability among factors. The IPO could unlock 400 million Singapore dollars to S$500 million of capital recycling for Sembcorp Industries, she adds. DBS retains a buy rating and S$7.30 target price on the Singapore energy solutions company. Shares are 0.8% lower at S$6.04. (megan.cheah@wsj.com)
0132 GMT - MISC's potential Yinson acquisition could weigh on its share price, CGS International's Raymond Yap says in a note. Media reported MISC could be part of the consortium to take private Yinson, he notes. Concerns over Yinson's high gearing and offshore exposure could overshadow the potential benefits of greater scale and talent for MISC's offshore business, he says. However, higher crude tanker freight rates in 3Q are expected to lift its unit AET's earnings in 4Q with a lag, while seasonally stronger rates could sustain performance into 1Q 2027, he adds. CGS downgrades MISC's rating to reduce from add, and cuts its target price to 7.58 ringgit from 9.17 ringgit. Shares are 4.6% lower at 8.09 ringgit. (yingxian.wong@wsj.com)
0122 GMT - Genesis Energy's softer-than-expected annual earnings guidance helps to keep Forsyth Barr among the bears. Genesis forecast FY27 Ebitdaf of NZ$480 million-NZ$520 million. The miss to expectations reflects higher operating expenses, with Genesis's digital transformation project, higher brand costs and meter-cost transfer all contributing, analyst Andrew Harvey-Green says. "In Genesis's favor is the short-term South Island hydro position," he says. "Inflows are strong, more than offsetting North Island dryness." Genesis is down 1.9% at NZ$2.65 today. (david.winning@wsj.com; @dwinningWSJ)
0101 GMT - Mineral Resources' FY result reflects a successful turnaround year, says Macquarie. It says the miner's resumption of dividends is a signal of returning balance-sheet strength. "Cost improvement/containment will remain an important focus in FY27 given inflation pressures," says the bank. Macquarie keeps its target of 80 Australian dollars a share and outperform rating on the stock. Shares are down 0.2% at A$65.26. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
2335 GMT - Oil edges higher on fading hopes for the reopening of the Strait of Hormuz. The Trump administration has told mediators it has no interest in returning to the terms of a preliminary deal it reached with Iran, which later fell apart. "This comes after Iran and Oman reached an agreement on revenue sharing on Hormuz earlier this week, raising hopes that the waterway would reopen to vessels shipping oil," ANZ Research analysts say in a note. Prospects of an agreement on reopening the strait have faded, they add. Front-month WTI crude oil futures are 0.1% higher at $83.59 a barrel. (ronnie.harui@wsj.com)
1932 GMT - U.S. natural gas futures settle higher as the EIA reports a smaller-than-usual storage injection for last week that reduced the inventory surplus over the five-year average by 18 billion cubic feet to 167 Bcf. Underground storage rose by 15 Bcf to 3,184 Bcf, the EIA said. "The past two reports likely represent the tightest conditions of the peak summer season, with just 31 Bcf added to inventories since August 7," Andy Huenefeld of Pinebrook Energy Advisors says in a note. "The recent heat wave should keep the next two reported injections relatively modest, but inventories are expected to remain on a generally healthy trajectory." The Nymex September contract goes off the board at $2.907/mmBtu, up 2.3%.(anthony.harrup@wsj.com)
1926 GMT - Oil futures snap a three-session losing streak and settle higher as the market turns its attention away from the Middle East to the Russia-Ukraine war that's heating up. "The bearish mood changed when reports emerged that Vladimir Putin had allegedly said talks with Ukraine were fruitless and that Russia was preparing to ramp up the war," Phil Flynn of the Price Futures Group says in a note. "The market is already pricing in victory on the Iranian front. The wild card now is what is happening on the Russian front." WTI settles up 1.6% at $83.53 a barrel, and Brent rises 2.1% to $89.70.(anthony.harrup@wsj.com)
1817 GMT - Gold futures edge up in a steady session with the market awaiting tomorrow's comments by Fed Chairman Kevin Warsh at Jackson Hole. "A balanced tone could support gold, while hawkish remarks may lift yields and pressure the metal," Konstantinos Chrysikos of Kudo.com says in a note. "Markets will also watch any shifts in geopolitical developments in the Middle East and their impact on oil prices and inflation expectations." Front month gold settles up 0.25% at $4,609.70 a troy ounce. Silver rises 2.1% to $69.429 a troy ounce. (anthony.harrup@wsj.com)
1639 GMT - Oil futures pick up after three sessions of losses that followed the U.S. tightening of sanctions on Iran and talks between Iran and Oman on opening a corridor through the Strait of Hormuz. Sanctions "tend to be rather leaky" and increasing them doesn't have much of an impact, says Christian Lawrence, head of Americas and energy market strategy at Rabobank. Sanctions against secondary countries could be more effective but in the case of Iran they would need to target China, which seems unlikely, he adds. The oil price decline is still well within recent ranges, with short-term pricing driven by headline noise, Lawrence says. "We have seen a lot more oil getting through the strait recently, but not distillates." WTI is up 0.6% at $82.69 a barrel and Brent is up 1.1% at $88.81. (anthony.harrup@wsj.com)
1533 GMT - U.S. natural gas inventories posted their smallest build so far of the current injection season, reducing the surplus over the five-year average to its lowest level in two months. Gas in underground storage increased by 15 billion cubic feet last week to 3,184 Bcf, the EIA reports. The storage build was below the five-year average for the week of 33 Bcf, and smaller than the 21 Bcf estimate in a WSJ survey of analysts. Stocks were 167 Bcf above the 2012-2025 average, compared with a surplus of 185 Bcf the previous week. Nymex natural gas is up 2% at $2.898/mmBtu. (anthony.harrup@wsj.com)
1511 GMT -- U.S. natural gas inventories posted their smallest build so far in the current injection season, reducing the surplus over the five-year average to its lowest level in two months. Gas in underground storage increased by 15 billion cubic feet last week to 3,184 Bcf, the EIA reports. The storage build was below the five-year average for the week of 33 Bcf, and smaller than the 21 Bcf estimate in a WSJ survey of analysts. Stocks were 167 Bcf above the 2012-2025 average, compared with a surplus of 185 Bcf the previous week. Nymex natural gas is up 2% at $2.898/mmBtu. (anthony.harrup@wsj.com)
1449 GMT - Dubai leads most major Gulf stock markets higher as domestic developments provide some support against continued geopolitical uncertainty. Positive developments in tourism, investment and banking are helping investor sentiment, allowing markets to look through some of the regional uncertainty, says Mazen Abou Ismail, head of trading desk at FFA Private Bank Dubai. Still, geopolitical risk remains a key concern through oil prices and regional tensions, with domestic strength offsetting rather than eliminating the risk premium, he says. The Dubai Financial Market General Index rises 0.3%, Qatar's QE index gains 0.2% and Abu Dhabi's benchmark index adds 0.1%, while Saudi Arabia's Tadawul All Share Index slips 0.2%.
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