The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0947 ET - Natural gas futures are down 3.3% as weather in the U.S. turns warmer, this offsetting continued chaos from the war in Iran. "Weather-driven gas demand continues to weaken," says EBW Analytics Group in a note. "Mild weather could further the storage surplus vs. the five-year average to surpass triple-digits by mid-April." Yesterday's storage report from the EIA showed a build of 35 bcf for the week, more than forecast by analysts surveyed by WSJ this week. (kirk.maltais@wsj.com)
0943 ET - Crude oil futures are inching lower despite word that Kuwait's Mina Al-Ahmadi oil refinery was struck again by Iranian drones. "Markets are closely monitoring efforts aimed at restoring supply flows, including a potential reopening of the Strait of Hormuz, easing sanctions on major oil producers, and the release of strategic reserves, which could play a key role in stabilizing the market," says Frank Walbaum of Naga in a note. Walbaum notes that fresh war headlines will likely introduce new volatility into prices to close out the week. Light crude and Brent crude are both down 0.2%. (kirk.maltais@wsj.com)
0905 ET - Utilities, chemicals, steel and cement stocks will benefit from an easing to Europe's flagship carbon-emissions regulations, analysts at Jefferies say. European Commission president Ursula von der Leyen said an upcoming review of the Emissions Trading System would result in some industries paying less for their carbon emissions than previously expected. Short-term reform will ease pressure on utilities stocks and energy-intensive sectors, the analysts say. However, the program won't be unwound completely, and carbon-reduction policies will remain in place over the long term, the analysts write. A basket of European construction stocks climb 1.6%, while utilities and chemicals gauges both rise by 0.5%. (josephmichael.stonor@wsj.com)
0735 ET - A prolonged conflict in the Middle East could cause copper equities to fall, RBC Capital Markets analysts write. Global economic growth forecasts might be downgraded as a result of the war and could push copper prices lower, they write. Investors might look for an exit given the stocks' exposure to global economic growth, they write. Cost inflation from higher fuel and electricity prices would also hurt miners' earnings, they say. The copper market could flip into a surplus as second-half production recovers with mine ramp-ups, they add. (adam.whittaker@wsj.com)
0645 ET - Yields on U.K. 10-year government bonds climb to the highest level since 2008 as the Middle East war raises concerns about prolonged energy supply shock and the risk of high inflation. In addition, the latest U.K. public finances data for February showed rise in government borrowing, reviving fears about the U.K.'s fiscal sustainability. U.K. public borrowing rose to 14.3 billion pounds ($19.2 billion) in February, from a 30.4 billion pounds surplus in January, higher than the consensus forecast by economists in a WSJ poll of 9.3 billion pounds of borrowing. Ten-year gilt yields hit a high of 4.942%, LSEG data show. (miriam.mukuru@wsj.com)
0632 ET - The Brent-WTI spread widened sharply this week, reaching its highest level in more than a decade as Middle East supply risks deepened the slip between global and U.S. crude benchmarks, market watchers say. The international oil benchmark is holding above $100 a barrel as severe disruptions in the Strait of Hormuz and attacks against key energy infrastructure in the Gulf region raise fears of supply shortages. The U.S. oil gauge WTI instead remains more insulated, reflecting domestic supply conditions. In midmorning European trading, Brent rises 1.6% to $110.42 a barrel, while WTI is up 0.5% to $93.46 a barrel. (giulia.petroni@wsj.com)
0620 ET - Yields on U.S. Treasurys and eurozone government bonds turn higher. Markets remain volatile due to uncertainty surrounding the Middle East war and energy prices. Yields rise as oil prices turn higher again, with Brent crude last up 1.2% at $109.99 a barrel. "When crude rallies, sentiment more broadly sours, and government bonds sell off as markets price a higher inflation profile moving forwards," says Pepperstone's Michael Brown. Markets had calmed earlier after Prime Minister Benjamin Netanyahu suggested Israel would refrain from future strikes against Iranian oil fields. U.S. 10-year Treasury yields rise 1.7 basis points to 4.302%. Eurozone 10-year government bond yields rise up to 4 basis points, with Germany's 10-year Bund yield up 3.2 basis points at 2.990%, Tradeweb data show. (jessica.fleetham@wsj.com)
0611 ET - Deutsche Bank has pushed up its U.K. inflation forecast for 2026 to 3%, from 2.4% previously, given the rise in energy costs amid the Middle East conflict. The impact of the surge in energy cost on the inflation outlook will be meaningful, Deutsche Bank's Sanjay Raja says in a note. There is a possibility that the U.K. government will offer support to consumers to help curb energy inflation, the economist says. (miriam.mukuru@wsj.com)
0610 ET - The U.K. government's fiscal position was worse than expected heading into the energy crisis, leaving less scope to support households and businesses, Ruth Gregory at Capital Economics says in a note. Public borrowing was 14.3 billion pounds in February, above Capital Economics's forecast of 7.5 billion pounds. "February's public finances figures showed that the fiscal position was worse than expected even before the full impact of the surge in energy prices is felt," Gregory says. Borrowing could soon rise further, while weaker growth and higher inflation could erode roughly half of the government's fiscal headroom. Any fiscal support package to help households and businesses "will probably need be smaller than the measures introduced in 2022," Gregory says. (don.forbes@wsj.com)
0556 ET - The cost of insuring euro credit against default jumps as Middle East tensions dominate markets. Energy prices remain elevated compared to prewar levels, causing investors to price in the risk of high inflation and possible interest-rate hikes by key central banks. The iTraxx Europe Crossover index of euro high-yield credit default swaps jumps 24 basis points to 335bps, the highest level in 10.5 months, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)
0518 ET - U.K. public finances are expected to come under strain due to effects of the Middle East war, Quilter's Lindsay James says in a note. The latest public finances data show borrowing in February was 14.3 billion pounds ($19.2 billion), higher than the consensus forecast by economists in a Wall Street Journal poll for borrowing of 9.3 billion pounds. High energy costs due to the U.S.-Iran conflict raise the risk of elevated inflation which add to inflation-linked government expenses, James says. "With U.K. growth already challenged, such a scenario of higher inflation and weaker growth playing out would be a really bad place to be given the level of inflation-linked costs." (miriam.mukuru@wsj.com)
0448 ET - London mining stocks rise as precious-metal prices tick upward. Metals came under pressure Thursday amid a selloff across markets as investors worried about the impact of the Middle East conflict on the global economy, ING's Warren Patterson and Ewa Manthey write. Metal prices however are up Friday, with gold futures rising 2.7% to $4,731.70 a troy ounce, while silver rises 3.4% to $73.68 an ounce. LME three-month copper futures are up 0.7% to $12,236 a metric ton. Precious metal miner Fresnillo is up 1.7%, while peers Hochschild Mining and Endeavour Mining both rise around 1.2%. Copper miner Antofagasta is up 0.9%. Diversified miner Anglo American rises 0.6%. (adam.whittaker@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 09:47 ET (13:47 GMT)
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