The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.

2128 ET - Malaysia's power sector may see robust execution this year, underpinned by accelerating data center demand and higher capital expenditure under regulatory parameters, Apex Securities analysts Tan Sue Wen and Ong Tze Hern say in a note. While macro uncertainty may slow data center growth in the short term, they see this as a temporary pause, not a structural change. Long-term electricity demand may remain strong, driven by cloud and AI infrastructure expansion, they add. Recent share price weakness in ancillary players presents a buying opportunity, they reckon. Apex maintains an overweight rating on Malaysia's power sector, and pegs CBH Engineering, UUE Holdings, Pekat Group and Southern Cable as top picks. (yingxian.wong@wsj.com)

2007 ET - Oil edges lower in the early morning Asian session amid supply concerns ahead of OPEC+ meeting on Monday. The group may decide to increase production further, Citi Research's Anthony Yuen says in a research report. There could be several reasons for such a decision, including some members of OPEC+ not wanting to restrict their production anymore, the analyst says. If the group opts to raise production further, Brent prices might revisit lows in the $50s/bbl or beyond, Yuen adds. Front-month Brent crude oil futures are 0.3% lower at $61.93/bbl; front-month WTI crude oil futures are 0.3% lower at $59.05/bbl. (ronnie.harui@wsj.com)

1833 ET - Coronade Global Resources's balance sheet is under stress, with its net debt rising to US$170 million in the last quarter and heavy capex continuing near term. It's also facing weak coal prices with little sign of a market upturn on the horizon. Ord Minnett expects Coronado to cover its funding shortfall using US$230 million of cash and additional debt of US$210 million over 2H of 2025 and through 2026. At that point cash flows should start to improve. "However, alternative options could be implemented to alleviate this balance sheet pressure including selling assets (or minority stakes), raising equity or temporarily closing assets until prices recover," says analyst Tim Elder, who rates Coronado at hold.(david.winning@wsj.com; @dwinningWSJ)

1511 ET - U.S. natural gas futures resume their recovery from a four-week selloff, rising for the fourth time in five sessions even as a predicted switch to an inventory surplus is confirmed. The EIA reported a 107 billion-cubic-foot increase in storage, which carried inventories to a surplus over the five-year average for the first time since mid-January. The storage build left stocks 5 Bcf above the five-year average but 435 Bcf below their year-earlier level. The delayed EIA report was "slightly bullish to market expectations" and "suggests that next week's EIA report printing over 100 Bcf isn't a lock and +90s can't be ruled out," NatGasWeather.com says in a note. Seasonal buying ahead of what is expected to be a hotter than normal summer, or expectations of stronger LNG exports could also have contributed to price gains, the forecaster adds. Nymex natural gas settles up 4.6% at $3.479/mmBtu. (anthony.harrup@wsj.com)

1505 ET - Oil futures surge late in a choppy session as President Trump threatens secondary sanctions against any country buying Iranian oil or petrochemical products. "They will not be allowed to do business with the United States of America in any way, shape, or form," he posts on Truth Social. The Treasury Department has already sanctioned several Chinese refineries for buying Iranian crude, as well as numerous companies and vessels that transport the oil. The post boosted futures that were moderately higher in an up-and-down session amid market concerns about OPEC+ possibly deciding on further outsized production increases at its meeting on Monday. WTI settles up 1.8% at $59.24 a barrel, and Brent rises 1.8% to $62.13 a barrel. (anthony.harrup@wsj.com)

1429 ET - U.S. natural gas inventories increased by 107 billion cubic feet last week to 2,041 Bcf, turning a deficit against the five-year average to a 5 Bcf surplus, EIA data show. The bigger-than-average increase, due in large part to mild spring weather curbing demand, was in line with the 106 Bcf estimate in a Wall Street Journal survey of analysts. The injection season got off to an early start this year thanks to mild March weather, eliminating a 230 Bcf storage deficit in seven weeks. Nymex futures extend gains following release of the EIA report, which was delayed for several hours. Gas for June delivery is up 6% at $3.526/mmBtu. (anthony.harrup@wsj.com)

1407 ET - While Cameco's uranium currently isn't being hit with the Trump administration's import tariffs, which exempt goods compliant with the Canada-U.S.-Mexico Agreement, CEO Tim Gitzel acknowledges a lot can change overnight. For one, Gitzel reminds investors the U.S. in April launched a fresh section 232 investigation on the risks of reliance on foreign sources of processed critical minerals which included uranium. A similar investigation in 2019 by Trump's first administration spared uranium, but Gitzel says the company in its wake proactively took steps to minimize potential future impacts such as adjusting and clarifying contract terms and positioning material well ahead of expected deliveries. "Those preemptive actions helped us prepare for the more recent threat of tariffs on Canadian nuclear fuel products, and we will continue to adapt accordingly and mitigate such risks in the future." (robb.stewart@wsj.com)

1200 ET - Commodity futures are mostly higher, with the energy complex in particular showing strength -- this despite a stronger U.S. dollar. Investors are settling into the reality of tariffs, but the effects of the active tariffs on Chinese goods are only gradually appearing, says Arlan Suderman of StoneX in a note. "The data hasn't been that bad thus far, although we're just now getting into the period when we're going to start seeing hard data on the impact of the tariff war, and the markets will have to digest that as it comes," Suderman says. A stronger U.S. dollar is typically a source of pressure for commodities, as it typically means that export buyers may seek cheaper alternatives for goods elsewhere. (kirk.maltais@wsj.com)

1150 ET - Oil prices regained some ground, with Brent crude and WTI both up 0.3% to $61.24 and $58.40 a barrel, respectively. Better-than-expected tech earnings boosted markets, reassuring investors amid tariff uncertainty. Meanwhile, a fourth round of U.S.-Iran talks initially set for Saturday will be rescheduled, according to a Reuters report. However, crude benchmarks are still headed for a weekly loss of nearly 7% as prospects of a prolonged war between the U.S. and China cloud the demand outlook. Traders are now awaiting Monday's OPEC+ meeting, fearing the group might accelerate output hikes for a second consecutive month. "Although it has recovered a bit since, the price of Brent crude fell below $60 pb in intraday trading today to levels which, before the immediate fallout from 'Liberation Day', were last seen in early 2021," says Kieran Tompkins, economist at Capital Economics. (giulia.petroni@wsj.com)

1024 ET - The dollar extends gains, hitting a fresh two-week high against a basket of currencies after data showed U.S. manufacturing activity contracted by less than expected in April. The ISM manufacturing PMI fell to 48.7 in April from 49.0 in March, against expectations for a bigger fall to 47.8. Investors had feared a risk of a weaker number given that President Trump announced sweeping tariffs in April, although he later delayed many of these. The DXY dollar index rises 0.6% on the day to a high of 100.119, from around 99.881 before the data was released. The euro also extends falls and last trades down 0.4% at $1.1294, versus $1.1322 beforehand. (jessica.fleetham@wsj.com)

1022 ET - With TC Energy's 1Q results in line with expectations and its guidance unchanged, the focus is on the energy company's incremental sanctioning of development projects, Jefferies' Anthony Linton says. He notes the company exited 1Q with a secured project backlog of about C$28 billion versus C$25 billion at the end of the prior quarter, and it now expects its SE Gateway pipeline in Mexico to be in-service at the end of May. Adjusted Ebitda of C$2.7 billion was in line with Jefferies' and the consensus forecast, and TC continues to expect a full-year adjusted Ebitda of C$10.7 billion-C$10.9 billion. Jefferies has a hold call and C$71 target. (robb.stewart@wsj.com)

1003 ET - Oil futures are lower with the market on edge about whether OPEC and allies will decide Monday on another large production increase for June. Brent could again fall into the $50s per barrel if OPEC+ decides to raise output further, analysts at Citi Research say in a note. Oil prices hadn't fallen more because physical markets remain "somewhat tight," they say, and a decision by OPEC+ to stick to its initial output increases of around 138,000 barrels a day could spark a relief rally. "Core members of OPEC tend to be ones maintaining production discipline, but if the UAE also wants to raise production, then Saudi Arabia looks likely to have fewer members to support its approach to greater production discipline," Citi says. WTI is off 0.5% at $57.93 a barrel, and Brent is off 0.5% at $60.76. (anthony.harrup@wsj.com)

(END) Dow Jones Newswires

May 01, 2025 21:28 ET (01:28 GMT)

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