The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0842 ET - Tamarack Valley's 3Q result was encouraging as the Canadian company again beat expectations on strong oil production, says Raymond James' Luke Davis. Production of 55,298 oil-equivalent barrels a day was in line with Davis's forecast and slightly ahead of the consensus call for 54,200. The analyst expects strength into 2027, with pro forma production volumes exceeding 80,000 barrels. Although the result was solid, Davis says investors likely are looking ahead to the Nov. 19 close of the Headwater acquisition as the next meaningful catalyst for the stock, which he expects will be accompanied by the 2027 capital budget, improved savings guidance and a refreshed five-year growth plan. (robb.stewart@wsj.com)
0611 ET - Palm oil prices ended lower, weighed by concerns over elevated Malaysian inventories and expectations of strong October production. Market sentiment continued to be pressured despite firmer crude oil prices, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Ng expects CPO futures to find support around 4,650 ringgit a ton and face resistance at 4,800 ringgit a ton, with traders closely monitoring inventory levels and export demands for further direction, he adds. The Bursa Malaysia Derivatives contract for January delivery ended 14 ringgit lower at 4,687 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0533 ET - Oil prices rise more than 1% after Yemen's Houthi militants said they targeted Saudi Arabia's largest oil refinery. In midmorning European trading, Brent crude for December delivery, which expires on Friday, is up 1.3% to $115.41 a barrel, while WTI futures gain 2% to $101.92 a barrel. The market is increasingly pricing in the risk of further escalation in the region, despite diplomatic efforts to foster dialogue between the U.S. and Iran. "We'll likely have to wait until after the Nov. 3 U.S. midterms for more clarity on how the situation in the Middle East evolve," analysts at ING say. "If we get past the elections without renewed strikes on Iran, that might be enough for the market's risk premium to start eroding." (giulia.petroni@wsj.com)
0436 ET - Yields on U.K. government bonds, or gilts, advance along with eurozone and U.S. peers as rising oil prices revive inflation concerns. Gilt investors are focused on the U.K. budget due around 1230 GMT and the Debt Management Office's 2026-2027 financing remit which will be released after that. Most analysts expect a cautious budget which should leave gilt markets relatively calm. Meanwhile, The Wall Street Journal reported that the U.S. could be preparing to resume attacks on Iran after the midterm elections due on November 3, raising fears about fresh energy supply disruptions. Brent Crude rises 1.2% to $115.2 a barrel. Ten-year gilt yields rise 2.6 basis points to last trade at 5.367%, Tradeweb data show. (miriam.mukuru@wsj.com)
0432 ET - Intertek's update should reassure prospective buyers EQT as they wait for regulatory approval to take the company private, RBC Capital Markets analysts Karl Green and Andrew Brooke say in a note. In common with its peers, the testing specialist reported good growth across most of its portfolio with the exception of its World of Energy division, which is suffering from R&D cuts and disruption from the Iran conflict, the analysts say. "In practice, just a footnote before the group goes off market," RBC says. Shares are down 0.1% at 5,915 pence and are up 28% year-to-date. (anthony.orunagoriainoff@dowjones.com)
0258 ET - Federal Reserve Chairman Kevin Warsh's main focus is credibility, rather than trying to lean on the hawkish or the dovish side, Jefferies' Mohit Kumar says in a note. "That's the message we are likely to get today as well," the global economist says ahead of the Fed's interest-rate decision. If there are inflation risks, then the Fed needs to deliver, Kumar says. Jefferies banks on lower oil prices, forecasting prices to return to $60-$65 per barrel in two years' time. "Hence, it's not oil prices that should determine the medium term inflation outlook," Kumar says. (emese.bartha@wsj.com)
0219 ET - A strong U.S. economy faces signs of a weakening labor market, as evidenced by recent payrolls and employment creation numbers, and this backdrop supports a wait-and-see approach by the Federal Reserve, KBRA's Joan Feldbaum-Vidra says ahead of the Fed's interest-rate decision. Additionally, normalized oil flows out of the Middle East tend to support medium-term compression of oil prices, although the risk of an escalation in conflict after the U.S. midterm elections are keeping oil prices elevated, the global head of sovereigns says. "Large-scale borrowing by AI companies and the U.S. Treasury are keeping yields high, helping do the Fed's job," she says.
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