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.
0100 GMT - Korea Electric Power could return to an operating loss in 4Q due to higher energy purchase costs, says Yujin Jeon at iM Securities. The analyst expects the state-run utility to post a loss of about 1.2 trillion won in the October-December quarter, following a profit of approximately 1.6 trillion won in the third quarter. Higher fuel procurement costs stemming from elevated oil and liquefied natural gas prices could persist through 1H of 2027, with little prospect of electricity tariffs being raised to reflect the higher costs, says Jeon in a note. The brokerage cuts its target price for the stock to 40,000 won from 48,000 won and keeps its buy rating. Shares are 9.6% lower at 27,700 won. (kwanwoo.jun@wsj.com)
2035 GMT - Oil futures give up early losses and close higher after President Trump said the U.S. doesn't need to reach a deal with Iran, adding risk premium back into the market despite the recent increase in supply from the Middle East. The market shrugged off bearish U.S. inventory data that showed strong builds in crude oil, gasoline and diesel stocks for last week. "Lower diesel demand and exports helped rebuild the tight inventories but there's a long way to go before domestic stockpiles return to normal," said David Russell of TradeStation. "We need a few more weeks like this to know whether the tide has finally turned." WTI settles up 2.6% at $88.74 a barrel, and Brent rises 3.3% to $95.82 a barrel. (anthony.harrup@wsj.com)
1316 GMT - Oil futures reverse early losses after President Trump posted on Truth Social that the U.S. doesn't need a deal with Iran, and would rather Vice President JD Vance focus on investigating alleged corruption in Democrat-run cities. The post caught the oil market off guard as hopes for negotiations had carried prices to two-month lows. "This shift in focus is not being taken particularly seriously by the oil pits," says Peter Cardillo of Spartan Capital, noting that prices eased after an initial spike. "We believe that, unless there is a military strike by either side, a significant reversal in oil prices is limited at this time." WTI is up 0.3% at $86.76 a barrel and Brent rises 0.7% to $93.37 a barrel.(anthony.harrup@wsj.com)
1035 GMT - More good news for the U.K. economy could spell trouble for the Bank of England, George Brown at Schroders says in a note. The economy grew 0.7% in the third quarter, the sharpest quarterly expansion since the first quarter of 2024. "Growth has remained resilient despite higher energy prices, with business investment doing the heavy lifting amid the AI buildout," Brown says. But this could prove a headache for the country's central bank, he adds. "If the economy keeps growing robustly as the labor market improves, the energy shock could morph into a more persistent inflation problem." Schroders expects interest rates to peak at 4.5%, from 4.0% now. "But continued strong growth could force the Bank to go further," Brown says. (don.forbes@wsj.com)
0956 GMT - U.K. economic growth could slow down meaningfully in 2027 after resilient expansion so far in 2026, Aberdeen's Felix Feather says in a note. The latest data show U.K. annual GDP grew at 2.1% in September, better than the expected growth of 1.9% by economists in a WSJ poll. Growth could soften as high energy costs and rising interest rates weigh on households' spending and business activity, Feather says.
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