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

1041 ET - The updated compensation plan submitted by OPEC+ members that have produced above their agreed levels would imply a tightening of supply in 2Q, negating the group's announced gradual unwinding in coming months, but "whether the overproducers follow through is another question," says Kieran Tompkins of Capital Economics. A potential resumption of exports from Kurdistan complicates Iraq's pledged compensation, while the expansion at Kazakhstan's Tengiz oilfield and presence of independent oil majors makes it hard for officials there to reduce output. "While at face value these compensation cuts should enable the OPEC+ members, including Saudi Arabia, that have shouldered the bulk of output cuts so far, to finally raise output again, it could quite easily be the start of the next chapter in internal OPEC+ tensions," Tompkins says. (anthony.harrup@wsj.com)

0946 ET - U.S. natural gas futures move back above $4 after selling off yesterday when the EIA reported the first inventory build of the year. "The injection was seen as a near-term negative happening a couple of weeks early," Dennis Kissler of BOK Financial says in a note. Still, "European and U.S. storage levels remain low for this time of year so early spring temperatures will be a key factor to monitor." Cooler weather forecast for the U.S. Northeast and strong LNG demand are keeping prices near the $4 level, he adds. The Nymex front month is up 1.2% at $4.022/mmBtu. (anthony.harrup@wsj.com)

0942 ET - Oil futures are giving back some gains made on the U.S. sanctioning of a Chinese refinery that buys Iranian oil, and OPEC+ details of members' updated plans to compensate for producing above agreed levels. Fresh U.S. actions against Iran have raised expectations of tighter global supply, and the OPEC+ compensation could lend additional support, although traders remain hesitant "as they assess the real impact of these developments," Joseph Darieh of Tickmill says in a note. WTI is off 0.4% at $67.80 a barrel as the front month switches to May. Brent is down 0.5% at $71.64 a barrel. (anthony.harrup@wsj.com)

0815 ET - Maersk could lift its 2025 guidance amid positive tailwinds from prolonged Red Sea disruption, higher contract rates, stronger volumes and improving logistics margins, HSBC says. The bank thinks any potential return of shipping to the Red Sea will be pushed to beyond this year's peak season, cushioning erosion in spot freight rates. Ocean unit profitability is set to decline in the near term, but the bank finds comfort from potential capacity discipline and contribution from its non-ocean businesses. The stock is attractive at near-trough valuations, with the share price implying zero value for the ocean business, HSBC adds. It lifts its target price on the stock to 14,500 Danish kroner from 14,000 kroner and keeps a buy rating. Shares rise 0.9% to 11,650 kroner. (dominic.chopping@wsj.com)

0617 ET - Palm oil prices fell in Asian trading amid profit-taking ahead of the weekend, Kenanga Futures says in a note. Malaysian exports have continued to fall since November due to high prices and its premium to rival soyoil, pushing "price-sensitive buyers to alternatives," analysts at AmInvestment Bank said. Markets may continue to trade sideways, they add. The Bursa Malaysia Derivatives contract for June delivery fell MYR37 to MY4,376 a ton. (kimberley.kao@wsj.com)

0511 ET - Oil prices are mixed, with Brent crude flat at $72.01 a barrel and WTI up 0.1% at $68.20 a barrel. Oil prices have held their ground, supported by geopolitical risks and supply concerns, Tickmill's Joseph Dahrieh says in a note. That said, the market appears hesitant to pile in, which could lead to intraday volatility as traders digest the real extent of developments, Dahrieh says. Fresh U.S. sanctions on Iran have raised expectations of tighter global supply while OPEC+ has announced a plan to curb excess production, reinforcing expectations of reduced output, he writes. If production cuts are maintained, long-term prices could rebound further, though any signs of slowing consumption--particularly from China--or rising non-OPEC supply could introduce volatility, Dahrieh adds. (joseph.hoppe@wsj.com)

0504 ET - Bitcoin falls as fears over U.S. tariffs and geopolitical tensions dent risk appetite. "Fresh trade disputes have rattled financial markets, with new U.S. reciprocal tariffs set to take effect on April 2, raising concerns about a prolonged economic standoff," Zaye Capital Markets analyst Naeem Aslam says in a note. Geopolitical uncertainties add to investor caution with the ongoing Ukraine conflict and tensions in the Middle East and Asia. Bitcoin falls 0.7% to $83,900, according to LSEG. (renae.dyer@wsj.com)

0312 ET - KCE Electronics' weak 2025 outlook is likely worsened by rising trade uncertainties, CGS International's Thanapol Jiratanakij says in a research report. According to S&P Global, there's 50% probability the U.S. auto industry may suffer supply-chain disruptions lasting 16-20 weeks if the U.S. proceeds with 25% tariffs on vehicle imports from Canada and Mexico starting April 2. Under this scenario, automakers may conserve auto-component inventory and replenish tariffed stocks slowly, which could adversely affect sales for auto-parts suppliers including KCE Electronics, the analyst says. Rising metal prices may also undermine the Thai company's cost-cutting efforts, says the brokerage, which lowers the target price to THB20.70 from THB22.40 with an unchanged hold rating. Shares are last 0.5% higher at THB19.00. (ronnie.harui@wsj.com)

0241 ET - ISOTeam's earnings stand to benefit from more development and upgrading projects from the Singapore government ahead of parliamentary elections slated to be held by end-2025, RHB Research's Alfie Yeo says in a research report. The government has recently announced more projects, such as two new hawker centers, S$10 million in grants to improve coffee shop toilets, and more facilities in housing estates, the analyst notes. These projects should benefit the facilities maintenance specialist as the company could receive more orders and post stronger revenue recognition. RHB lifts its FY 2025-2027 earnings forecasts for ISOTeam by 11% for each fiscal year, and raises the target price to S$0.08 from S$0.07 with an unchanged buy rating. Shares are 1.3% lower at S$0.076. (ronnie.harui@wsj.com)

0126 ET - The impact of London's Heathrow Airport closure is starting to be felt, with flight cancellations being announced and likely more to come. A Singapore Airlines flight, which was scheduled to depart from Singapore's Changi Airport for London's Heathrow Airport at 12:45 p.m. Singapore time Friday has been canceled, according to a Changi Airport Group spokesperson. Besides the canceled flight, there are five other flights scheduled to depart between now and 01:30 a.m. Singapore time on Saturday--two British Airways flights, one Qantas Airways flight and two Singapore Airlines flights, the spokesperson said. The respective airlines will decide on whether their flights will operate as scheduled, the spokesperson added. (amanda.lee@wsj.com)

(END) Dow Jones Newswires

March 21, 2025 10:41 ET (14:41 GMT)

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