The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0816 GMT - Norsk Hydro is well-placed to take advantage of elevated aluminum prices, RBC analyst Marina Calero writes. With the Middle East conflict showing no signs of de-escalating, supply risks are mounting. The region is home to 9% of global production, and the closure of the Strait of Hormuz makes it challenging, if not impossible, to export production and import raw materials. RBC now assumes no production at Norsk Hydro's Qatar joint venture this year. However, the Norwegian company is blessed with low-cost hydropower, stands to benefit from higher aluminum prices and European premiums, and its energy division could see windfall prices. RBC upgrades its rating on Norsk Hydro to outperform from sector perform and lifts its price target to 95 Norwegian kroner from 85 kroner. Shares rise 2.9% to 88.04 kroner. (dominic.chopping@wsj.com)
0733 GMT - European natural-gas prices are poised for a weekly gain of roughly 20% as Qatar reports severe damage to the world's largest LNG plant. Iranian strikes on Ras Laffan reduced the country's export capacity by 17% and state-owned QatarEnergy will be compelled to declare force majeure for up to five years on some long-term LNG contracts. "The market is starting to price in a longer supply disruption," ING analysts say. "Also, the large global LNG surplus that the market had expected through 2027 is looking much more elusive." The benchmark Dutch TTF front-month contract falls 2.3% to 60.41 euros a megawatt-hour in early trading after hitting its highest level since 2022 on Thursday. (giulia.petroni@wsj.com)
0732 GMT - As the Middle East conflict continues to disrupt energy flows via the Strait of Hormuz, RBC Capital Markets strategists are watching for any signs that the Houthis may enter the fray, imperiling the alternative Red Sea export route. For now, the Houthis have stayed on the sidelines, unlike in 2019 when they targeted the East-West pipeline and joined the Iranian strike on Abqaiq following the termination of exemptions for importers of Iranian oil by the U.S., the commodity strategy team says. "If the Yemeni group does become an active participant, we think it would materially alter risk perceptions about the Red Sea exports," they write. Even a few missiles or drones fired into the Bab el-Mandeb Strait would push oil prices several legs higher in the current environment. (fabiana.negrinochoa@wsj.com)
0732 GMT - Nordic markets are seen opening slightly higher, with IG calling the OMXS30 up 0.3% at around 2918. Pressure on markets eased somewhat late Thursday after Israel's prime minister said it will not hit further energy targets, that the war will end sooner than many think, SEB's Erik Meyersson writes. Brent oil fell to $108 a barrel yesterday, but this wasn't enough to prevent broad declines on stock markets, he says. Equity markets in Japan and large parts of Asia are closed but European and U.S. futures point higher. Friday sees the quarterly "triple-witching" event, when a large number of options linked to U.S. equities expire, Meyersson adds. OMXS30 closed at 2908.97, OMXN40 at 2414.18 and OBX at 1954.02. (dominic.chopping@wsj.com)
0712 GMT - Power Assets' investors should watch how the company plans to use proceeds from the sale of its stake in UK Power Networks, its largest British asset, says Morningstar's Lorraine Tan in a note. The Hong Kong-based utilities-investment company's priority is to reinvest the cash, she says. However, the company's track record shows that it previously paid out some the proceeds from a 2014 deal as dividends as it was unable to find a suitable target, the director notes. She reckons a special dividend is more likely, but prefers an acquisition that could provide growth, given that the company's shares and valuation could fall after the potential special dividend is paid. Morningstar raises its fair-value estimate to HK$59.00 from HK$53.00. Shares are down 0.8% at HK$61.675. (megan.cheah@wsj.com)
0709 GMT - Oil prices slip after leading European nations, Japan and Canada said they were ready to join efforts to ensure safe passage through the Strait of Hormuz. Meanwhile, Treasury Secretary Scott Bessent said the U.S. might lift sanctions on Iranian oil already at sea in the coming days. In early European trade, Brent crude is down 0.5% to $108.11 a barrel, while WTI falls 1.5% to $91.57 a barrel. Still, the international oil benchmark is on track for a weekly gain of 5% as attacks on key infrastructure in the region keep the risk premium high. "The escalation of the attacks on energy assets implies significant risks for not just near-term oil exports from the region, but longer-term oil production capacity," analysts at Goldman Sachs say. (giulia.petroni@wsj.com)
0704 GMT - A week of central bank decisions is wrapping up with one clear conclusion: the Middle East conflict is intensifying, and no one knows what the right monetary policy response should be, says Ipek Ozkardeskaya at Swissquote. The message echoed by major central banks is that rising oil and energy prices will push inflation higher in the short to medium term, depending on how long the conflict lasts, while weighing on growth. The challenge is that raising rates in response to an external supply shock is only partially effective, she says in a note. It won't end the war, fix damaged infrastructure, or directly lower energy prices, the analyst writes. What rate hikes can do is curb growth and dampen demand, helping to contain, but not necessarily reverse, inflationary pressures. (fabiana.negrinochoa@wsj.com)
0653 GMT - Malaysia's exports face a mixed outlook amid the Middle East conflict, CGS International economist Mas Aida Che Mansor says in a note. Overall exports should continue to be supported by shipments of manufactured products, especially in electrical and electronics. The country could also face more demand for crude oil and liquefied natural gas exports, she says. Buyers will look for alternatives as Middle East supply has been disrupted due to the closure of the Strait of Hormuz. However, rising oil prices and supply-chain strains could push up logistics and input costs, weighing on the country's production. CGS International maintains its 2026 export growth forecast for Malaysia at 7.9%.(amanda.lee@wsj.com)
0652 GMT - The two-year U.S. Treasury yield starts to gain appeal at 3.80% if the war in the Middle East ends soon, Societe Generale's Subadra Rajappa and Shakeeb Hulikatti say in a note. "With an interest-rate hike unlikely in the U.S. and the potential for a quick reversal in the recent price action if the war ends, the 2-year Treasury yield at 3.80% starts to look attractive," the U.S. rates strategists say. A prolonged conflict and continued rise in oil prices are a risk to this view, they say. The two-year Treasury yield last trades 3.7 basis points lower at 3.794%, according to Tradeweb. (emese.bartha@wsj.com)
0637 GMT - U.S. Treasury yields mostly fall in Asian trade as oil prices have retreated from Thursday's jump. Brent last trades at $107.12, off from Thursday's intraday high of $119.13, prompted by escalating attacks on energy infrastructure in the Gulf. The market's focus will remain on geopolitical developments, "with there again being a high likelihood that participants seek to take down risk levels as we move into the weekend," Pepperstone's Michael Brown says in a note. The two-year Treasury yield falls 3.7 basis points to 3.794%, the 10-year yield declines 0.6 bp to 4.275%, while the 30-year yield is largely stable at 4.856%, according to Tradeweb. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 04:16 ET (08:16 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
