The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0745 GMT - London's miners gain after oil prices ease. Brent crude and WTI fall as investors assess the likelihood that U.S.-Iran diplomatic efforts could reopen the Strait of Hormuz. Miners are some of the world's largest consumers of diesel and higher prices eat into margins. High oil prices also raise the prospect of interest rate rises to combat inflation. This would hurt investment and consumer sentiment, and drag on demand for mined minerals and metals. With sentiment improved, Glencore rises 2% while Anglo American gains 1.3%. Antofagasta is 0.9% higher. Precious metal miners Fresnillo, Hochschild Mining and Endeavour Mining all gain over 1.2%. Brent crude futures are down 1.1% to $105.45 a barrel, while West Texas Intermediate falls 1.9% to $92.85 a barrel.(adam.whittaker@wsj.com)
0736 GMT - European energy stocks open lower as oil prices slip. Brent crude and WTI have fallen as investors assess the likelihood that U.S.-Iran diplomatic efforts could reopen the Strait of Hormuz. Brent crude futures are down 1.1% to $105.45 a barrel, while West Texas Intermediate fall 1.9% to $92.85 a barrel. In London, BP falls 2% and Shell drops 0.4%. France's TotalEnergies is 0.8% lower and Spain's Repsol is down 0.6%. Italy's Eni falls 0.2%. Norway's Equinor is down 1.3%. (adam.whittaker@wsj.com)
0730 GMT - CSE Global's new contracts likely have stronger margins than those from its hyperscaler-related orders, CGS International's Tan Jie Hui and Lim Siew Khee sayin a note. The Singapore technology company announced two electrification order wins totaling US$150 million, spanning liquefied-natural-gas and data-center power infrastructure, the analysts say. They estimate the contracts' blended Ebitda margins at around 10%, as they require greater customization than the hyperscaler ones. These order wins could also help CSE Global deepen key relationships in U.S. LNG and hyperscale power infrastructure sectors beyond its current customer Amazon Web Services, they add. CGSI retains its add rating and target price of 1.95 Singapore dollars. Shares rise 0.8% to S$1.27. (megan.cheah@wsj.com)
0726 GMT - Oil prices tick lower as traders weigh signs of diplomatic progress to end the Middle East war against renewed Houthi attacks against Saudi Arabia. In early European trading, front-month Brent crude is down 0.7% to $105.90 a barrel, while WTI futures fall 1.5% to $93.28 a barrel. An attempted Houthi strike on Thursday revived concerns over potential disruptions to Saudi energy infrastructure and regional supply routes. However, gains were limited by reports that the U.S. and Iran are exploring a phased framework to reopen the Strait of Hormuz. "Optimism over a potential U.S.-Iran truce encouraged profit-taking," analysts at brokerage Kotak Neo say. "Near-term direction will depend on the progress of negotiations, further Houthi activity and upcoming inventory data." (giulia.petroni@wsj.com)
0658 GMT - Var Energi's deal to buy BlueNord strengthens the equity story well beyond the announced synergies, Citi analyst Tianhong Bi writes. Var Energi announced a deal in July to buy Oslo-listed peer BlueNord in a cash and stock deal valued at around $1.3 billion. Citi says Var shares have undergone a significant rerating since this time last year, but the bank still sees further upside as BlueNord extends cash-flow potential and strengthens confidence in the new 450,000 barrels of oil equivalent per day production ambition. "The combination broadens the resource base, reduces reliance on the higher-decline Norwegian portfolio and creates a 2nd infrastructure-led development engine in Denmark." Citi raises its target price to 57 Norwegian kroner from 48 kroner and keeps buy rating. Shares closed at 53.28 kroner. (dominic.chopping@wsj.com)
0652 GMT - Eurozone government bond yields fall in opening trade as U.S. Treasury yields stabilize after a light selloff in Asia and as oil prices move slightly lower. There is no government bond supply in the eurozone on Friday, but France and Spain will announce details for their auctions next week. The 10-year Bund yield falls 3.1 basis points to 3.575%, having hit 3.611% on Thursday, the highest since 2009, according to Tradeweb.
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