The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1555 ET - U.S. natural gas futures recover some ground as production readings ease and near-term weather forecasts turn a little colder. "Cooler revisions in the Northeast and Midwest add heating consumption ahead of the weekend, yet much of the country remains warmer than normal through mid-November," Gelber & Associates says in a note. "Household demand should build as temperatures fall, but the forecast still limits how much gas that seasonal increase will absorb." Nymex natural gas settles up 1.4% at $2.8950/mmBtu.(anthony.harrup@wsj.com)
1413 ET - Gold futures settle lower as a volatile oil market keeps investors concerned about inflation and prospects for higher interest rates. Strong central bank buying will provide future support, but likely won't keep prices from retreating further, Hamad Hussain of Capital Economics says in a note. "While central banks will remain a steady source of demand that will keep a floor under prices, other drivers will keep gold prices under pressure," he says. A hawkish Fed will be a headwind, and "the recent positive correlation between equities and gold suggests that gold prices will fall if, as we expect, the AI equity boom turns to bust." Capital Economics expects gold to fall to $3,600 an ounce by the end of 2027. Front-month gold settles down 0.7% in New York at $3,927.90 a troy ounce and silver falls 2.2% to $49.587 a troy ounce. (anthony.harrup@wsj.com)
1344 ET - Goods exports from Latin America and the Caribbean rose 19.5% year-on-year in the first half of 2026, the Inter-American Development Bank says. The bank's Trade and Integration Monitor 2026 shows that export growth outpacing the 14.5% increase in overall world trade. Growth was driven by higher prices for oil and other commodities and also by demand for infrastructure associated with artificial intelligence, the bank adds. The share of U.S. imports from Latin America and the Caribbean hit a record high of 22.1% in the first half of this year, while U.S. purchases from the rest of the world declined, the bank says. (stephen.nakrosis@wsj.com)
1250 ET - Alberta is positioning as a building ground for data centers at a time where other parts of North America are hitting pause, executives at Canadian power company TransAlta say. During a conference call, executives told analysts that demand for power isn't abating even with moratoriums on data centers in places like Texas, Pennsylvania and New York. The company says there is strong policy support for developments from the Alberta government and the power industry regulator. Executives add the province has been deliberate and focused on ensuring reliability and affordability aren't compromised for Albertans. (robb.stewart@wsj.com)
1231 ET - TransAlta is mothballing aging power-generating unit in Alberta but is holding the assets in reserve in anticipation new data centers will continue to drive up demand. The Canadian utility this week notified the regulator it is mothballing Battle River 4 that began commercial operation in 1975 and Battle River 5 that began in 1981, while it also extends the outage at Sundance 6 in the province, CEO Joel Hunter tells investors. It describes it as a purely economic decision that maintains the long-term option on the assets as load increases over time in Alberta with the arrival of data centers. TransAlta in February signed an MoU with Bookfield and Canada Pension Plan Investment Board to advance data center development in Alberta. (robb.stewart@wsj.com)
1056 ET - Precious metals are pulling back from the previous session's gains as a volatile oil market keeps alive concerns about inflation and higher interest rates. Investors remain cautious about the U.S. midterm elections, "which could have significant implications for energy policy and Washington's approach towards Iran," Kaynat Chainwala of Kotak Neo says in a note. "Further progress in U.S.-Iran negotiations could ease energy prices and support bullion, while renewed geopolitical tensions that keep crude oil elevated would reinforce inflation risks and leave gold and silver under pressure." Gold for December delivery is down 0.6% in New York at $3,946.80 a troy ounce. Silver is down 1.8% at $49.97 a troy ounce. (anthony.harrup@wsj.com)
0925 ET - Drax's appointment of Brookfield and Radiant as partners in an AI data center in the north of England is positive given the strong infrastructure reputation of the parties, RBC Capital Markets analysts write. They add that the 20 billion pound investment is a strong signal to the U.K. government on the potential positive impact the project would have in the region. "We continue to see Drax in a unique position whereby the site has material under-utilized capacity which can be used for a data centre with no detrimental cost impact on the wider grid," the analysts say. RBC has an outperform rating on the stock and a 10.50 pound target price. Shares in Drax are up 6.9% at 864.50 pence. (ian.walker@wsj.com)
0916 ET - U.S. natural gas futures gain in early trade, with production readings off some and a slightly colder near-term weather outlook. It's no surprise that European models added some heating degree days overnight "since there was little room for the data to be any warmer," NatGasWeather.com says in a note. "The longer it takes for blue weather maps to show up in the weather models, the more impatient the natural gas markets could get." Nymex natural gas is up 2.1% at $2.915/mmBtu. (anthony.harrup@wsj.com)
0908 ET - Oil futures give up early gains and resume yesterday's retreat on optimism about diplomatic efforts toward an agreement between the U.S. and Iran. "The market appears to have downplayed the importance of U.S. strikes on Iranian targets on Qeshm Island, as they seemed non-escalatory at a time when the market is already pricing in high risks of escalation," Samer Hasn of XS.com says in a note. Hasn sees "nothing to justify this level of optimism about negotiations between the U.S. and Iran, which could keep downward moves in oil prices unsustainable." WTI is down 2.3% at $94.21 a barrel and Brent falls 3% to $101.64 a barrel. (anthony.harrup@wsj.com)
0747 ET - BP's balance sheet is repairing faster than expected, HSBC's Kim Fustier writes. The bank sees total financial obligations falling to just under $35 billion by year-end from $44.3 billion at the end of the third quarter. The British energy major's intention to prioritize paying down its remaining Deepwater Horizon liabilities further reduces the likelihood of quarterly buybacks resuming before 2028, she says. BP trades flat at 599.80 pence.(adam.whittaker@wsj.com)
0727 ET - French energy major TotalEnergies posted a modest beat against raised consensus expectations, HSBC's Kim Fustier writes. Stellar LNG results and exceptional margins helped drive cash generation in the third quarter, she says. Management now sees full-year free cash flow from operations between $42 billion and $43 billion, and if does hit the upper range, the final dividend could be increased to meet the company's payout commitment, the analyst writes. Shares are up 0.3% at 83.90 euros. (adam.whittaker@wsj.com)
0555 ET - The dollar turns higher as Treasury yields rise and oil prices rebound after sharp falls in the previous session. The U.S. struck Iran's Qeshm Island in the Strait of Hormuz on Monday, the WSJ reported, citing U.S. officials. The WSJ reported separately that America's Gulf allies are preparing for the possibility of a broader U.S. military campaign against Iran. Brent crude rises 1.1% to $105.89 per barrel after reaching a three-week low of $103.28 Monday, LSEG data show. Higher oil prices support the dollar as the U.S. is a net oil exporter. The DXY dollar index rises 0.1% to 101.816 after hitting a one-month low of 101.426 Monday but gains are limited amid investor caution ahead of Tuesday's midterm elections.
Comments