The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1146 ET - ExxonMobil CEO Darren Woods says the company plans to invest more than $100 billion through 2030 to bolster global energy supplies, with roughly 10% of that focused on its refining business. "No other international oil company has invested more to grow crude production and refined product production," Woods says during an appearance on CNBC. The investment will span Exxon's upstream, refining and chemical businesses across its global footprint, he says.(kelly.cloonan@wsj.com)
1145 ET - With fuel prices rising amid geopolitical tensions, ExxonMobil CEO Darren Woods says the company is focused on churning out diesel. "Frankly, diesel is the key crunch point here because it is so critical to economic growth and [has] very inelastic demand," Woods says during an appearance on CNBC. "The demand for diesel remains high despite the capacity." Woods says the company is at record levels of utilization for its refineries, and the yield of diesel across its global refining footprint is at record levels. In North America, the company is producing record diesel volumes, he adds. "It's all been a function of trying to drive more product into the marketplace to meet that demand and to drive costs down." (kelly.cloonan@wsj.com)
0904 ET - The mild weather outlook for the first half of November is keeping downward pressure on U.S. natural gas futures, with the December contract retreating further from the $3 level. "The oversized injection report yesterday, combined with inconsistent LNG feed gas data, sent the market tumbling yesterday and has December still trying to find its footing at the top of the gas board this morning," Tradition Energy's Gary Cunningham says in a note. The weather is providing little if any support, he says. "We are still in a very bearish trough with some slight support down around $2.85." Nymex gas for December delivery is off 2.5% at $2.878/mmBtu.(anthony.harrup@wsj.com)
0901 ET - Oil futures are higher in a jittery market ahead of next week's U.S. midterm elections. Attacks on tankers in the Strait of Hormuz, Houthi strikes on Saudi targets and a resumption of Ukrainian attacks on Russian refineries are driving the rise, Peter Cardillo of Spartan Capital says in a note. "The present situation is looking bleaker than ever, potentially putting additional pressure on President Trump to take action," he says. "The escalating tensions could push oil prices, even if only briefly, to new yearly highs." WTI is up 2.2% at $104.23 a barrel and Brent is 2.1% higher at $117.33 a barrel. (anthony.harrup@wsj.com)
0725 ET - An important factor for the euro's outlook is whether energy prices remain high and feed into broader price pressures, Commerzbank's Norman Liebke says in a note. If energy prices stay elevated and signs of second-round effects increase, the market could price in more interest-rate rises by the European Central Bank, supporting the euro, he says. If price pressures remain largely confined to energy, the bar for further rate hikes after a likely move in December will remain high, he says. In this case, the euro's upside potential will be limited, particularly as energy inflation could partly decline again next year due to base effects, he says. The euro rises 0.2% to $1.1201. (renae.dyer@wsj.com)
0706 ET - BP delivered against elevated expectations, UBS analyst Joshua Stone writes. Operating earnings came in 10% ahead of consensus and adjusted net income beat by 15%, Stone notes. One of the most important elements from Friday's release was the intention to settle the remaining liabilities from the Deepwater Horizon oil spill in full, which is equivalent to around $5 billion post-tax, he says. Shares rise 0.4% to 626.70 pence. (adam.whittaker@wsj.com)
0635 ET - BP's net debt could fall even further as it awaits the "imminent" arrival of $6 billion from the disposal of Castrol, J.P. Morgan's Matthew Lofting writes. Total financial obligations have fallen by $9.3 billion, or 20% over the period, as the company prioritizes its balance sheet, he says. Shares trade 0.5% higher at 627.20 pence.(adam.whittaker@wsj.com)
0616 ET - BP will need a credible growth strategy once it has shored up its balance sheet, AJ Bell investment director Russ Mould writes. It is prudent for BP to fix the foundations while the sun shines, he says. "December's strategy day is [CEO Meg] O'Neill's opportunity to show she has the vision to lead the business into a new phase in its development." Shares rise 0.4% to 626.70 pence. (adam.whittaker@wsj.com)
0602 ET - Palm oil prices ended higher on stronger crude oil prices, which improved the outlook for biodiesel demand. However, concerns over elevated Malaysian inventories continued to limit gains, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Ng expects CPO futures to find support around 4,600 ringgit a ton and face resistance at 4,800 ringgit a ton, with traders closely monitoring crude oil prices, soybean oil movements and fresh exports estimates for further directions, he adds. The Bursa Malaysia Derivatives contract for January delivery ended 66 ringgit higher at 4,682 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0449 ET - Oil prices rise in early European trading, driven by persistent threats to shipping in the Strait of Hormuz and fears that the U.S. could resume military strikes against Iran. "Oil prices will continue to see an upside skew until there is clarity on the geopolitical conditions in the Middle East, with the period following next week's U.S. midterms in focus for a potential deterioration in regional security," analysts at MUFG say. Brent crude for December delivery, which expires on Friday, is up 1.9% to $117.08 a barrel, while the more-active January contract gains 1.9% to $112.98 a barrel. WTI futures rise 1.9% to $103.93 a barrel. (giulia.petroni@wsj.com)
0435 ET - European natural-gas prices climb back above 100 euros a megawatt-hour, driven by fears of escalating tensions in the Middle East and colder temperatures in northwest Europe. In early trading, the benchmark Dutch TTF contract is up 3.3% to 101.10 euros a megawatt-hour, on track for a weekly gain of nearly 8%. According to market watchers, gas storage inflows have stalled as the heating season kicks off, with tanks only 74.9% full. "The key question is whether these higher prices will destroy demand," ING analysts say. "In power markets, we're already deep into the gas-to-coal switching range." (giulia.petroni@wsj.com)
0424 ET - British energy major BP continues to beat expectations, RBC Capital Markets' Biraj Borkhataria writes. The company's operational performance is strong and net debt is lower than its target one year early, the analyst says. With its refining operations heavily exposed to the U.S. midcontinent, its refining earnings will be more resilient than peers in the fourth quarter, he adds. It will also be less hurt by growing freight costs and supported by heavy discounts on Canadian crude, according to RBC. Shares rise 1.3% to 633 pence.
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