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

1056 ET - Power utilities will remain critical for the expansion of AI infrastructure despite the growing number of dedicated electricity generators being built near data centers, Joseph DeCampo, a managing director at investment bank Moelis & Company, says during an industry conference. "While they may start off as behind-the-meter or off-grid projects, data centers ultimately would like to be tied into the grid," DeCampo says. Data centers would be reluctant to rely on off-the-grid power installations alone partly because of their high reliability requirements, other panelists say. That puts utilities in the best position to benefit from surging demand for electricity to power AI systems, DeCampo says. "[Utilities] understand the grid better than anybody out there," he says. "They are the ones who ultimately benefit from the longer-term [power] trends." (luis.garcia@wsj.com; @lhvgarcia)

1033 ET - Oil futures are higher in early U.S. trading with continuing tensions in the Middle East and the market watching the storm heading for the U.S. Gulf coast. Tropical Storm Isaias is expected to be a hurricane when it reaches the U.S. coast late Friday, according to the National Hurricane Center, although the projected path has shifted east of the main oil-producing areas. Consulting firm Earth Science Associates estimates the storm could result in shut-in production of about 11.2 million barrels of oil and 13.3 billion cubic feet of natural gas. Front month WTI is up 0.6% at $89.98 a barrel and Brent gains 1.2% to $101.76 a barrel. (anthony.harrup@wsj.com)

0944 ET - UBS raises its December oil price forecast by $5 a barrel, citing continued declines in inventories and escalating attacks in the Strait of Hormuz, which have prompted markets to price in a higher geopolitical risk premium. The bank now expects Brent crude to reach $100 a barrel by year-end, while WTI is forecast at $96 a barrel. The outlook, however, remains highly uncertain, reflecting the unpredictable course of the conflict in the Middle East and the pace of recovery in Gulf production, UBS says. (giulia.petroni@wsj.com)

0931 ET - Europe's planned release of strategic oil stockpiles might not translate into an immediate boost to supply, says Giovanni Staunovo from UBS. Unlike in the U.S., European inventories are spread across hundreds of locations and managed by governments, central stockholding agencies and private industry. Releases are often carried out by reducing mandatory stockholding requirements--such as the number of days of net imports or domestic consumption that companies must hold--rather than by directly selling barrels into the market, the strategist says. The process is further complicated because some European countries store strategic stocks in other nations. "As a result, lower mandated stockholding requirements may not translate into a complete and immediate increase in supply to the physical market," Staunovo says. (giulia.petroni@wsj.com)

0928 ET - U.S. natural gas futures are higher as Tropical Storm Isaias forms in the Gulf of Mexico and is expected to reach the U.S. Gulf coast as a hurricane later this week. The storm could potentially affect nearly 10 Bcf of gas output by the end of the week, Gary Cunningham of Tradition Energy says in a note. "That potential cut, uncertain as it may be, is giving the bulls a chance to come out of the shadows and push November comfortably above the $3 mark." Production losses could be offset on the demand side by cooling wind and rain and possible shut-in LNG production, he adds. Nymex natural gas is up 2.3% at $3.187/mmBtu.(anthony.harrup@wsj.com)

0921 ET - LNG markets are likely to remain tight into next year, with restricted Strait of Hormuz transit expected to constrain Qatar's exports until at least the first quarter, ANZ analysts say. Asia is bearing most of the demand adjustment, with higher LNG prices encouraging switching to coal in power generation and fuel substitution in industry, particularly in India and China. Europe, meanwhile, is relying more heavily on storage drawdowns and reduced industrial consumption to balance the market amid higher prices. A colder winter, weaker wind generation or stronger Chinese buying could intensify competition for LNG cargoes. "While the LNG market can absorb the loss of Qatari supply, the adjustment will be achieved through demand destruction, lower inventories and sustained high prices rather than a material increase in available supply," the analysts say. (giulia.petroni@wsj.com)

0907 ET - Emera's merger with Canadian Utilities offers greater scale and diversification, but there are some drawbacks. TD Cowen's John Mould says "reduced relative exposure to Florida (a high quality jurisdiction for utilities) will be a disappointment for some investors." He says that Florida is one of North America's most attractive utility jurisdictions given the state's strong economic and population growth, but following the transaction, Florida's contribution to rate base is expected to decline to 46% from 73%. However, the positives will be in expanded scale, diversification over the longer-term, as well as adding concentrated exposure to Alberta where Mould sees a robust economy and opportunity to outperform at distribution utilities. "We expect modest low-single-digit EPS accretion, albeit under conservative assumptions," Mould adds. (adriano.marchese@wsj.com)

0622 ET - Europe's refining industry is key to the continent's energy policy, says Liana Gouta, director-general of industry group FuelsEurope. European Commission chief Ursula von der Leyen this week announced a strategic dialogue on European refineries, a move aimed at bringing down diesel costs and ensuring supply, including for Europe's defense industry. That launch is welcome, Gouta says. "We look forward to working with policymakers to ensure that competitiveness, security of supply and industrial transformation advance together, supported by a strong and resilient European refining sector," she says. Boosting refineries is a "long-term prerequisite" for Europe's climate, energy and industrial goals, says the group, whose energy-major members include ExxonMobil, BP, Italy's Eni and Norway's Equinor. (joshua.kirby@wsj.com; @joshualeokirby)

0610 ET - Elevated crude tanker rates are adding to already high fuel prices worldwide, ING's senior economist Rico Luman says. Tankers have repeatedly been targeted in key Middle East shipping lanes, with operators facing sharply higher insurance premiums. At the same time, demand for tanker capacity has surged as traders seek alternative routes and sources of supply. Transport costs for crude shipments from Ras Tanura in Saudi Arabia to Rotterdam, which stood at around $2 a barrel in 2025, surged above $35 a barrel in September, Luman says. Combined with strong refinery margins, these higher shipping costs could add more than $0.50 a liter to diesel prices at the pump. Although new tanker orders have increased, most vessels won't be delivered until 2028-29, leaving the market exposed to prolonged capacity constraints. (giulia.petroni@wsj.com)

0556 ET - Spanish energy major Repsol's strong update boasted record high refining margins but these have deteriorated into September and October, which could weigh on sentiment, RBC Capital Markets analyst Biraj Borkhataria writes. The third-quarter update suggests limited upgrades to consensus expectations, he adds. "We continue to see Repsol well placed relative to other refiners in Europe given its complexity and ability to adjust both crude and product slates to maximize margins," he says. Shares are up 0.2% to 28.83 euros. (adam.whittaker@wsj.com)

0543 ET - Geopolitical uncertainty, rising Treasury yields and euro weakness due to concerns about France's budget provide a tailwind for the U.S. dollar, Eleonex's Stefan Arsenovic says in a note. The dollar is likely to remain supported near recent highs, albeit with Wednesday's Federal Reserve minutes due at 1800 GMT providing a key test, he says. "Fiscal and political uncertainty in France remains elevated, keeping pressure on the single currency. Political risk in Spain [after Spain recently announced snap elections] has added to that backdrop." However, any signs of diplomatic progress in the Middle East could reduce demand for the currency, he says. The DXY dollar index rises 0.4% to 102.258, edging closer to Monday's high of 102.535, its strongest since April 2025. (emese.bartha@wsj.com)

0358 ET - Shell's continued strong oil and gas trading performance should be seen as a positive readacross to other large energy majors, J.P. Morgan's Matthew Lofting writes. The British energy major's third-quarter trading statement shows how it has been able to capture value amid the high and volatile price environment, he adds. Shares rise 0.5% to 3,668 pence.