The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1631 ET - Oil futures rise with prospects of conflict escalation in the Middle East increasing concerns about future supply from the region. "Crude oil prices are on the rise as the market rebuilds geopolitical risk premium amid escalatory rhetoric from the U.S./Israel and Iran, raising fears of renewed and potentially even more intense back-and-forth strikes," Mike Castle of StoneX says in a note. WTI settles up 3.8% at $103.27 a barrel for a 4.3% gain on the week. Brent rises 3.1% to $116.72 a barrel, a 6.2% weekly gain and its highest close since April 29. (anthony.harrup@wsj.com)
1624 ET - U.S. natural gas futures extend the week's losses as mild weather for the time of year combines with rising production. "That recovery is bringing supply back into the market just as domestic consumption moves through a milder stretch," Gelber & Associates says in a note. Thursday's storage report that reduced the inventory surplus over the five-year average by 10 Bcf to 35 Bcf was enough to generate a brief recovery, "but it has not changed the broader picture of adequate supply heading into November," the firm adds. "Colder conditions later in the outlook should increase residential and commercial consumption into November, but the intervening mild period gives recovering production more time to replenish inventories." Nymex natural gas settles down 5.6% at $2.64/mmBtu. (anthony.harrup@wsj.com)
1435 ET - Precious metals extend losses with silver reaching a new low for the year and gold settling below the $4,000 level. Rising oil prices, with the implications for inflation, continue to weigh on gold, Konstantinos Chrysikos of Kudo says in a note. The Fed is expected to leave interest rates unchanged next week, so the market will focus on the statement and press conference, he says. "Any hawkish messaging, especially if oil keeps climbing, would likely extend bullion's losses." Any signs of a less restrictive stance could set up a relief rebound, he adds. Front-month gold for October delivery settles down 1.3% in New York at $3,991.10 a troy ounce. Silver falls 1.9% to $53.711 a troy ounce, its lowest settlement since Nov. 26, 2025. (anthony.harrup@wsj.com)
1424 ET - JPMorgan sees potential downside risk for Norwegian Cruise Line Holdings from interest expenses, high fuel costs, and the potential for continued geopolitical strain. For 3Q results slated for October 29, the analysts suggest fuel costs will be higher than both the Street consensus and the company's implied guidance, with interest expense adding a 35 cent EPS headwind next year. They also cite possible downside risk to 2H27 net yield acceleration on "potential for prolonged geopolitical headwinds to constrain demand recapture in Europe noting 85% of Europe itineraries for NCLH are sourced from USA based customers--the highest across our cruise coverage." JPMorgan downgrades Norwegian Cruise Line to underweight from neutral, cutting the price target to $11 from $13. Norwegian Cruise Line is down 4.2% to $14.90. (elias.schisgall@wsj.com)
1346 ET - The number of rigs drilling for oil in the U.S. rose by one this week to 460, and was up by 40 from a year ago, oil services company Baker Hughes reports. The rise in global oil prices brought on by the U.S.-Iran conflict has encouraged drilling, with U.S. oil production reaching record high levels. Oil rigs are up by 53 from when the conflict began at the end of February. Natural gas rigs slipped by one this week to 132, or 11 more than a year ago. (anthony.harrup@wsj.com)
1231 ET [Dow Jones]--The EU's recent trade talks with China, which saw both sides agree to an annual cap on Chinese hybrid and plug-in hybrid vehicles entering the bloc and lower tariffs on EU goods like olive oil and car parts shipped to China, could be a stepping stone to look at addressing trade imbalances in other sectors, Helen McEntee, Ireland's trade minister, says at a meeting in Dublin Friday. She says that the EU has made progress in its trade relationship with China, "albeit in a limited way on certain industries and certain types of products," she says. "I would see that as a platform and perhaps a stepping stone to look to more industries and sectors where we can address that imbalance," she says. (edith.hancock@wsj.com)
1215 ET - Silver futures are falling for a third straight session, trading at their lowest level in almost a year, while gold is lower and hovering just above the $4,000 mark. The recent Nasdaq rout is weighing heavily on precious metals, Peter Cardillo of Spartan Capital says in a note. "We see two main factors: first, investors are raising cash; second, Russia is selling gold holdings as the war continues to leave its economy in shambles," he says. "Nonetheless, while the risk of further downside remains, we would selectively buy at these levels." Silver for December delivery is off 1.4% in New York at $54.225 a troy ounce. Gold is down 1.2% at $4,010.20 a troy ounce. (anthony.harrup@wsj.com)
1054 ET - U.S. natural gas futures are lower as weather forecasts shed more near-term heating demand. "With warmer overnight trends, the weather data maintains a solidly bearish pattern for most of the next 15 days," NatGasWeather.com says in a note. The first week of November is "very El Niño-like" with warmer-than-normal temperatures over most of the northern 2/3 of the U.S., the forecaster says. "Clearly, the longer it takes for colder/bluer weather maps to show up in the weather models, the more impatient the natural gas markets are likely to get waiting." Nymex natural gas is down 3.3% at $2.703/mmBtu.(anthony.harrup@wsj.com)
1024 ET - Gold prices trade just above $4,000 a troy ounce, on track for a weekly loss of nearly 4% as rising oil prices fuel concerns over inflation and rate hikes. In early U.S. trading, futures in New York are down 0.9% to $4,022.80 an ounce. "The latest price action suggests that short-term speculative selling is currently outweighing demand from longer-term investors," analysts at Saxo Bank say. "A sustained recovery will likely require stabilising energy prices, continued demand from central banks and ETF investors, and, not least, evidence that the recent wave of long liquidation has run its course." (giulia.petroni@wsj.com)
0948 ET - Increased geopolitical risk premium explains the oil market's ability to shrug off the increased flows through the Strait of Hormuz, with Middle East tension, the Russia-Ukraine war, and stepped-up Houthi attacks on Saudi infrastructure posing threats to global supply in various regions, Ritterbusch & Associates says in a note. The firm expects the "fear premium" to remain intact through next week ahead of the U.S. midterm elections, given U.S. threats of renewing strikes on Iran and Iranian threats of retaliation. WTI is up 2.6% at $102.03 a barrel and Brent gains 2.2% to $115.63 a barrel. (anthony.harrup@wsj.com)
0856 ET - Treasury yields edge higher following Thursday's decline as markets grow convinced the Fed will hold rates steady next week despite rising oil prices. Threats of escalation in the Middle East push Brent crude up 2% to $115 a barrel. Meanwhile, markets price in 92% odds of a Fed hold, according to CME, although a hike is expected for December. U.S. manufacturing and services PMIs at 9:45 a.m. ET are expected to tick lower, according to a WSJ consensus. The October University of Michigan consumer sentiment index, at 10 a.m., is also expected to decline. The 10-year yield is at 4.984% and the two-year at 4.682%, both on pace for a weekly decline. (paulo.trevisani@wsj.com; @ptrevisani)
0827 ET - SLB's data-center solutions business continues to grow quickly, CEO Olivier Le Peuch says in the company's 3Q earnings release. Revenue across the division was up 23% sequentially, driven by growing demand, a broadening scope of services and geographic expansion into Asia. "AI is driving unprecedented investment in data center infrastructure, and customers are looking for partners who can deploy quickly, reliably and at scale," Le Peuch says. SLB's planned $4.1 billion acquisition of Kelvion, a thermal-management company, will strengthen its technology portfolio, further supporting the data center business, he adds. "Overall, we continue to strengthen our position as an industrial technology partner to the data center industry and to expand our participation in this rapidly growing market," Le Peuch says.
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