The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0645 GMT - TotalEnergies gave near-unprecedented visibility of its growth plan, Barclays analyst Lydia Rainforth writes in a note after the French energy major's capital markets day. The plan through 2035 is supported by projects across its upstream business and growth in its integrated power unit, she says. The free cash flow growth that the plan will deliver is not reflected in the share price, she adds. The company is targeting upstream production growth of more than 3% a year to 2030 and then between 2% and 3% growth over 2031 to 2035. Shares closed Monday at 80 euros. (adam.whittaker@wsj.com)
0016 GMT - Oil rises amid the ongoing deadlock in U.S.-Iran ceasefire talks. "Iran and the U.S. remain far apart over a ceasefire agreement and the reopening of the Strait of Hormuz," NAB's Sally Auld says in commentary. "Tehran said it was standing by a proposal rejected by President Trump, although Iranian Foreign Minister Abbas Araghchi was reportedly still due to meet mediators in New York," the group chief economist adds. The Strait of Hormuz is a key waterway through which one-fifth of the world's oil is transported. Front-month WTI crude oil futures are 1.0% higher at $93.52 a barrel, while front-month Brent crude oil futures are up 1.1% at $106.41 a barrel. (ronnie.harui@wsj.com)
1424 GMT - Canadian miners are the main drag on the TSX as the price of gold tumbles to seven-week low. Higher fuel costs raise concerns of another U.S. Fed rate hike to temper inflation, driving down the price precious metals while the price of crude rises. Gold falls 3.1% to $4,188 an ounce and silver is down 4.2% to around $62 an ounce. Among the biggest decliners of the session were AbraSilver Resources, Aris Mining, and K92 Mining as well as larger players in the space such as Agnico Eagle, Lundin Gold and Eldorado Gold. (adriano.marchese@wsj.com)
1405 GMT - Crude oil is up toward $95 a barrel as the sentiment around a potential ceasefire in the Middle East conflict has soured. "The market rebounding once again as the prospects of a deal are looking unlikely," says Scott Shelton of TP ICAP in a note. Oil prices jumped after President Trump rejected an Iranian truce proposal that would have opened the Strait of Hormuz for seven days. However, both WTI light crude oil and Brent crude have pared gains in early trading, with light crude up 1.9% to $94.19 a barrel and Brent crude up 2.1% to $106.48 a barrel. (kirk.maltais@wsj.com)
1300 GMT - The global bond selloff resumes, keeping Treasury yields near multiyear highs, as hopes for an imminent solution for Hormuz and the oil trade fade away. President Trump rejects a ceasefire proposal and Iran is under pressure to return to the negotiation table. The impasse sends oil up, fanning inflation fears. The Conference Board Consumer Confidence Index is expected to be stable tomorrow, according to WSJ consensus. On Wednesday, PCE inflation is forecast to remain hot, while payrolls are expected to shrink Friday. The 10-year yield is at 5.215%, near its June 2007 high. The two-year is at 4.912%, both higher than Friday but off overnight highs. (paulo.trevisani@wsj.com; @ptrevisani)
1152 GMT - RWE's outperformance against peers is set to continue, underpinned by a strong balance sheet and supportive demand for power, JPMorgan analysts write. The energy company's diverse portfolio of renewables offers positive exposure to gas and power prices, commodity price volatility, and long-term contracted sources of earnings and cash flows, the analysts say. JPM has an outperform rating on the stock and 68.50 euros target price. Shares are up 0.6% at 55.19 euros, and are 27% higher year to date.
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