The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1620 ET - Crude futures settle lower with the market watching for any breakthrough in diplomatic efforts to reopen the Strait of Hormuz, but while Brent edges up 0.4% on the week, U.S. benchmark WTI falls 3.8%. WTI faces pressure from the U.S. market, which saw a weekly build in commercial crude stocks and a drop in refinery runs, says XS.com market analyst Linh Tran. "These factors have weakened WTI, while Brent remains supported by concerns over disruptions to international supply, pushing the spread between the two benchmarks to more than $10 per barrel." The possibility of a U.S. diesel export ban, although undecided, could further pressure WTI as refiners would have less incentive to raise operating rates and buy additional crude, she adds. WTI settles down 2.3% at $92.41 a barrel and Brent falls 2.1% to $104.32. (anthony.harrup@wsj.com)
1531 ET [Dow Jones]--U.S. natural-gas futures return some of the previous session's gains that were due to the outage on a pipeline in West Virginia operated by a unit of TC Energy. While no date for a resumption of service had been given by Friday morning, the fact the problem was confined to the regulator station "reduced concern that the outage will require a prolonged pipeline-integrity response," Gelber & Associates said in a note. LNG feedgas flows continue to support market balances, "but cooling demand is declining as the market moves deeper into the shoulder season," the firm adds. Nymex natural gas settles down 3.1% at $3.196/mmBtu. (anthony.harrup@wsj.com)
1411 ET - Gold futures snap a four-session losing streak as the U.S. dollar pulls back following four straight sessions of gains. Front-month gold gains 0.5% in New York to $4,286.20 a troy ounce, for a weekly loss of 2.3%. Silver rises 1.2% to $64.245 a troy ounce, ending the week down 3.5%. "Looking ahead, further softness in oil, the dollar and yields could support bullion, while stronger data and hawkish Fed guidance remain headwinds," Kaynat Chainwala of Kotak Neo says in a note. (anthony.harrup@wsj.com)
1406 ET - The number of rigs drilling for oil in the U.S. rose by three this week to 455 and was up by 31 from a year ago, oil services company Baker Hughes reports. U.S. crude oil production has been running at record levels around 13.9 million barrels a day, according to the EIA which projects output will average 13.8 million b/d this year and close to 14.3 million barrels a day in 2027. "The rig count is up so we're going to have more crude oil coming down the pipe," says Mizuho's Robert Yawger. "We kind of need it here in the States." Natural gas rigs increased by 1 to 135, which was 18 higher than a week ago. (anthony.harrup@wsj.com)
1156 ET - Benchmark U.S. natural gas prices were 6% lower this summer than in 2025 despite unusually hot weather that drove up air-conditioning demand, the EIA says in a note. Henry Hub prices averaged $2.93/mmBtu from June through August. "Increased renewable electricity generation, record natural gas production, and ample natural gas inventories helped limit upward pressure on prices," the agency says, while maintenance at LNG terminals curbed demand growth. Natural gas-fired electricity generation increased by 7.5 billion kilowatt hours from the same period in 2025, while solar grew by 19.4 billion kWh and wind power by 9.3 billion kWh. "We estimate that additions in renewable capacity and generation reduced the amount of natural gas needed to meet higher summer electricity demand," the EIA adds. (anthony.harrup@wsj.com)
1119 ET - Gold futures are higher after four sessions of declines as the U.S. dollar slips and oil prices tread water awaiting clarity on U.S.-Iran diplomacy. "A stronger dollar not only weighs on gold because the metal is priced in U.S. dollars, but also reflects the flow of global liquidity toward U.S. assets, particularly in an environment of rising yields and growing expectations that interest rates will remain elevated," Rania Gule of XS.com says in a note. "I believe any meaningful short-term recovery in gold will first require genuine signs of weakness in the dollar, rather than merely a temporary pause in its advance." Gold for December delivery is up 0.4% in New York at $4,315.50 a troy ounce. Silver is up 1.1% at $64.705 a troy ounce. (anthony.harrup@wsj.com)
1049 ET - Oil futures are lower with the market cautiously weighing diplomatic efforts seeking a U.S.-Iran agreement on the Strait of Hormuz. "Although diplomatic progress suggests the potential for further declines in crude prices, physical tightness is preventing a more decisive sell-off," Konstantinos Chrysikos of Kudo.com says in a note. "Caution remains as energy infrastructure in the Middle East is vulnerable to any new escalations." WTI is off 1.4% at $93.32 a barrel and Brent is down 1.2% at $105.35. (anthony.harrup@wsj.com)
0927 ET - U.S. natural gas futures are giving back some of the previous session's hefty gains that were largely due to an interruption on a TC Energy pipeline in West Virginia. "It now appears that this outage could prove brief," Ritterbusch & Associates says in a note. "Yesterday's price response to the pipeline outage was likely exacerbated by a continued heavy speculative presence on the short side of this market, where participants have likely been lulled to sleep by what has been a sizable storage cushion across the past summer." Yesterday's EIA report showed the storage surplus shrinking for a sixth consecutive week, and further reductions are likely as heat has lingered across much of the southern U.S., the firm adds. Nymex natural gas is down 4.6% at $3.147/mmBtu. (anthony.harrup@wsj.com)
0903 ET - Treasury yields ease slightly as oil prices ease following reports that U.S. and Iran are discussing a deal to reopen Hormuz. Durable goods orders were unchanged in August, beating WSJ consensus forecast of a small drop. The University of Michigan consumer sentiment index due at 10 a.m. ET is expected to move lower and an upward surprise could trigger another bond selloff, as a resilient economy is perceived as likely to spur rate hikes by the Fed, underpinning the recent increase in yields. The 10-year yield is at 5.179%, down from a 19-year intraday high of 5.224% reached Thursday. The two-year is at 4.899%, after reaching 4.943% late yesterday. (paulo.trevisani@wsj.com; @ptrevisani)
0844 ET - Maersk is likely to raise guidance again with its third-quarter results, as freight rates remain strong, Bernstein analyst Alex Irving writes. Full-year consensus Ebitda of $12 billion-$13 billion looks sensible, versus current guidance of $10.5 billion-$12.5 billion, he says. "While the ever-growing industry order book remains cause for concern, near term dynamics have continued to surprise to the upside." Chinese port congestion has eased but remains a constraint on available capacity, keeping rates higher. At the same time, strong demand continues to support revenues, he adds. The Danish shipping group and its peers have partially resumed sailing through the Red Sea, but it shouldn't have an impact on 2026 guidance. Bernstein rates Maersk stock at underperform with a 14,100 Danish kroner price target. Shares fall 0.5% to 23,610 kroner. (dominic.chopping@wsj.com)
0833 ET - British energy major BP isn't expected to start buying back shares until 2028 despite higher commodity prices, HSBC's Kim Fustier writes. The conflict in the Middle East has provided a cash windfall that will be used to pay down debt, she adds. BP's priority remains getting its leverage closer to peers, she says. HSBC sees BP's buybacks returning at $2 billion a year in 2028. If BP completes $3 billion of asset sales in 2027 and 2028, its total leverage should fall to around 11% by the end of 2028 and be in line with peers, she says. Shares fall 3% to 554.20 pence. (adam.whittaker@wsj.com)
0821 ET - Norway's Equinor is expected to grow its 2026 buyback to $4 billion on materially higher gas prices, HSBC's Kim Fustier writes in a note. The company set out a $3 billion target at its June CMD but since then gas prices have stayed high, she says. Equinor's balance sheet is set to continue improving and the company should be able to comfortably pay out $4 billion again over 2027, she says. Buybacks are then seen sustained at $3 billion as gearing stabilizes at low-double digits by the end of 2028, she notes. Shares fall 3.1% to 403.40 Norwegian kroner.
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