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

1150 GMT - Oil price movements and U.S. Treasury yields are likely to be the main drivers of U.K. government-bond yields in the near term, ING economists say in a note. "For every $10 increase in oil prices, gilt yields rise by some 10 basis points to 15 bps," they say. The gilt market could stay highly volatile due to these external factors, they say. Ten-year gilt yields fall 2.5 basis points to last trade at 5.346%, after hitting a 19-year high of 5.381% on Thursday, LSEG data show. (miriam.mukuru@wsj.com)

1148 GMT - Oil prices extend losses in afternoon European trading, but remain on track for weekly gains of nearly 9% as escalating attacks in the Middle East fuel fears of prolonged supply disruptions. "The key risk in the near term is that fighting causes the partial recovery in crude oil flows to go into reverse," says David Oxley from Capital Economics. "This could include affecting oil flows via the Red Sea, and/or disrupting the practice of ship-to-ship transfers, which have both been vital in allowing around 60%-80% of prewar crude oil flows to exit the Strait [of Hormuz] in recent months." Brent crude is down 3.1% to $104.33 a barrel, while WTI futures fall 2.8% to $99.63 a barrel following a Financial Times report of Middle Eastern diplomatic efforts to secure temporary shipping arrangements with Iran.(giulia.petroni@wsj.com)

1101 GMT - European equities are less vulnerable to spikes in natural-gas prices than in 2022, but higher energy costs can still hurt the continent's stocks, Citi analysts write. Gas storage volumes are higher than many assume, they say, even as benchmark natural-gas prices on the continent trade at their highest levels since the end of 2022. While higher gas prices would hurt European stocks, Citi commodity analysts see European prices falling by around 30% through the end of the year. "We therefore remain constructive on European equities through mid-2027, supported by solid earnings-per-share growth," they write. (josephmichael.stonor@wsj.com)

1008 GMT - Palm oil fell during the Asian trade, erasing earlier gains. Concerns over rising stockpiles and a weaker-than-expected export performance highlighted in the latest data from the Malaysian Palm Oil Board may have weighed on sentiment, Kenanga Futures writes in a note. The Bursa Malaysia Derivatives contract for November delivery fell 67 ringgit to 4,818 ringgit a ton. (kimberley.kao@wsj.com)

0912 GMT - Norsk Hydro's fourth-quarter Ebitda faces risks from disrupted natural-gas supply and cost uncertainty, J.P. Morgan analysts write. The Iran-U.S. conflict continues to impact the aluminum industry, after Norsk Hydro announced in August that disruptions to natural-gas supply at its Alunorte alumina refinery led to a temporary curtailment. That led management to implement contingency measures including purchasing natural-gas volumes at spot prices. While the impact on third-quarter earnings is material on its own, the bank remains concerned regarding the potential impact if Norsk Hydro needs to secure additional spot liquefied natural gas volumes into the fourth quarter. The bank downgrades Norsk Hydro stock to neutral from overweight and lowers its price target to 97 Norwegian kroner from 116 kroner. Shares fall 2% to 89.14 kroner. (dominic.chopping@wsj.com)

0844 GMT - Energean is fairly valued, Berenberg analysts write, keeping a hold rating on the stock but slightly increasing the target price to 780 pence from 765 pence. The oil-and-gas company's first-half performance was solid and exploration efforts in Greece offer potential catalysts in early 2027, they say. However, the lower dividend outlook underwhelmed investors and net debt remains elevated against the company's target, they add. Shares fall 1% to 788.50 pence.(adam.whittaker@wsj.com)

0829 GMT - BASF selling down its stake in Harbour Energy removes an overhang from the stock and is positive for the London-listed energy company, Barclays analyst Lydia Rainforth writes. The sale improves the stock's free float and reduces the risk of future large block disposals, she says. A major shareholder selling down its large stake is an important step for Harbour Energy, she adds. The company remains well positioned with a growing exposure to the U.S. as well as to high oil and gas prices, she says. The sale cuts BASF's stake to 16.4% from 24.3%. Harbour's shares fall 3% to 269.4 pence. (adam.whittaker@wsj.com)

0815 GMT - A strong semiconductor market will be a boon to U.K. industrial stocks like Renishaw and XP Power, as AI-related demand continues to boost chip makers, Jefferies analysts say in a research note. Both Renishaw and XP Power are likely to upgrade their expectations, with semiconductor strength supporting a wider revenue recovery, the analysts say. Jefferies raises its recommendations on both stocks to buy from hold, and lifts its recommendation on peer Halma to hold from underperform. Halma's Avo Photonics business, which has benefited from AI demand in recent years, disappointed the market at the company's last update, the analysts say. XP Power shares jump 9.3%, while Renishaw's climb 3.4% and Halma's are up 0.7%. (adria.calatayud@wsj.com)

0756 GMT - Oil prices slip in early trading, but are still headed for weekly gains of 10% after climbing back above $100 a barrel. "Oil's resilience reflects a market now repricing both the duration and severity of the conflict, along with a clearer recognition of the mounting threat to regional supply," analysts at ING say. Meanwhile, "Saudi energy infrastructure and crude oil exports from the Red Sea are increasingly at risk, with the Houthis in Yemen targeting Saudi Arabia." In early European trading, Brent crude is down 1.5% to $105.96 a barrel, while WTI futures fall 1.4% to $101.02 a barrel. According to the Financial Times, Gulf foreign ministers plan to meet their Iranian counterpart on Monday, as Oman and Iran seek regional backing for a temporary agreement to manage shipping through the Strait of Hormuz. (giulia.petroni@wsj.com)

0719 GMT - Comex gold futures are likely consolidating above support at $4,300 per ounce, based on the daily chart, RHB Retail Research's Aiman Kamil Bin Ahmad Shauqi says in a research report. Latest price movements show weak momentum, in line with the relative strength index, which is trending horizontally, the analyst says. At this juncture, however, the 20- and 50-day simple moving averages continue to trend upward, supporting the bullish technical setup. Once bullish momentum picks up again, the commodity should resume its uptrend toward initial resistance at $4,500 per ounce, the analyst adds. Spot gold is 0.7% higher at $4,350.60 per ounce. (ronnie.harui@wsj.com)

0604 GMT - Commerzbank rates strategists confirm their caution on bond duration as bonds struggle to establish a new range, Christoph Rieger, head of rates and credit research, says in a note. "Notwithstanding the seemingly attractive yields, we maintain a cautious duration stance," he says. "The market is struggling to establish a new range, while oil prices stay under pressure and central banks stick with their laissez-faire attitude toward rising bond yields," he says. (emese.bartha@wsj.com)

0532 GMT - BPX is central to British energy major BP's growth story, Barclays analyst Lydia Rainforth writes after hosting the division's CEO Kyle Koontz at the Barclays Energy-Power Conference. The U.S. onshore oil and gas business delivered around 545,000 barrels of oil equivalent a day in the second quarter of the year, making a significant contribution to BP's overall production. As production has ramped up, BPX has improved capital efficiency by around 35% since 2023, while unit costs are down around 10%, she writes. Koontz indicated that BPX is ahead of its production growth objectives as it targets production of above 650,000 oil equivalent barrels a day by 2030, Rainforth said.