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.
1501 ET – Oil futures extend their losing streak to five sessions as the market shrugs off higher U.S. tariffs against India for buying Russian crude oil and a draw in U.S. crude stocks. The additional 25% tariff on Indian goods is due to start in 21 days, which “allows some wiggle room for three-way negotiations between Russia, India, and the U.S. that could possibly keep the oil flowing,” Mizuho’s Robert Yawger says in a note. OPEC+ output increases and the possible impact of U.S. tariffs on demand remain a drag on prices. The EIA reported a 3 million barrel drop in U.S. crude stocks, with production and imports down on the week, exports up, and refineries running near flat out at 96.9% of capacity. “All the crude oil moving pieces were bullish in today’s report,” Yawger adds. WTI settles down 1.2% at $65.35 a barrel and Brent falls 1.1% to $66.89. (anthony.harrup@wsj.com)
1113 ET – Crude oil futures are holding gains after President Trump signed an executive order raising U.S. tariffs on imports from India to 50% from 25% because of India’s purchases of Russian oil. Earlier thisweek, India’s foreign ministry said targeting the country for buying the oil it needs was “unjustified and unreasonable.” The threat against buyers of Russian oil has kept a bid in crude, which fell the previous four sessions on concerns about broader U.S. tariffs curbing demand growth and OPEC+ plans for another large output increase in September. WTI is up 1.2% at $65.92 a barrel and Brent is up 1.1% at $68.40. (anthony.harrup@wsj.com)
0926 ET – Oil futures are recovering from four straight sessions of losses as the deadline for U.S. sanctions against buyers of Russian oil approaches. “With [U.S. special envoy Steve] Witkoff in Russia today and deadline on Friday, today will be an important day for the prospects of this being a real issue for crude,” Scott Shelton of TP-ICAP says in a note. Analysts also note the API’s report of a 4.2 million barrel withdrawal in U.S. crude oil stocks. EIA inventory data are due at 10:30 a.m. ET. Analysts in a Wall Street Journal survey predict a small stock build of 100,000 barrels. WTI is up 1.9% at $66.37 a barrel and Brent is 1.8% higher at $68.83. (anthony.harrup@wsj.com)
1507 ET – Crude futures extend their losing streak to four sessions with the market focused on OPEC+ production plans and playing down the U.S. threat of sanctions against buyers of Russian oil. “We still view a lack of significant action amid extended negotiations as the more likely development,” Ritterbusch says in a note. Market focus will turn to tomorrow’s EIA inventories report following last week’s surprise 7.7.million barrel crude stock build. Analysts in a Wall Street Journal see a 100,000 barrel crude stock increase, a drawdown in gasoline, and an increase in distillate stocks. WTI settles down 1.7% at $65.16 a barrel and Brent falls 1.6% to $67.64.(anthony.harrup@wsj.com)
1338 ET – Average daily ethanol production in the U.S. may rise back above the 1.1 million barrel a day mark, according to analysts surveyed by Dow Jones this week. It would be the first time since June that average production has been this high, bringing it close to the record of 1.12 million barrels a day set in early June. Lower corn prices may be one factor allowing ethanol producers to make more—as they are able to pay less to buy more corn. CBOT corn futures are down 1.2%, soybeans are off 0.3%, and wheat falls 1.7%. (kirk.maltais@wsj.com)
1316 ET – The OPEC+ agreement to raise production by another 547,000 barrels a day in September sets oil on a downward path that could push prices to new 52-week lows, says Spartan Capital’s Peter Cardillo. He sees futures “positioned to fall below $60 a barrel due to higher production and technical weakness.” Crude futures are lower for a fourth straight session, with WTI and Brent both down 1.4%. “The uncertainty surrounding tariffs, combined with the OPEC+ decision, is likely to renew a bearish trend,” Cardillo adds. (anthony.harrup@wsj.com)prior, Brooks writes. BP’s chief executive reiterated that the oil company is committed to its London listing and that a move to the U.S. isn’t on the cards, Brooks adds. Shares trade up 2% at 414.50 pence.(adam.whittaker@wsj.com)
