Energy & Utilities Roundup: Market Talk

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.

0637 GMT - SK Innovation is likely to benefit from higher lubricant base oil prices, LS Securities analyst K.H. Chung says. The South Korean refiner is a global leader in premium lubricant base oils, producing about 80,000 barrels of Group III base oils a day, Chung writes in a note. She expects the supply shortage of lubricant base oils to persist for more than a year. Tight supply of kerosene and diesel and wider refining margins could also continue to boost the company's earnings, she adds. LS Securities upgrades the stock to buy from hold and raises its target price to 187,000 won from 126,000 won. Shares end 2.6% higher at 158,000 won. (kwanwoo.jun@wsj.com)

0113 GMT - YTL Power International could see upside from its expanding data-center and AI infrastructure, as well as renewed power-generation opportunities, says Hong Leong IB analyst Daniel Wong in a note. Its Kulai and Sedenak West hubs offer 2.4GW of potential data-center capacity, while its AI-GPU capacity could scale to 100MW or more and support a new services business. The procurement of seven gas turbines totaling 5.25GW also positions YTL for power-generation growth and supports its expanding data-center pipeline, he reckons. Higher water tariffs and planned treatment plants at its unit Ranhill Utilities should support earnings as Johor's water demand rises, he adds. Hong Leong raises its target price to 8.08 ringgit from 7.58 ringgit and keeps a buy rating. Shares are 1.4% higher at 5.62 ringgit. (yingxian.wong@wsj.com)

The price fetched by Amplitude Energy for its natural gas in 1Q should improve on the prior three months, supporting growth in revenue. That's the view of Bell Potter analyst Stuart Howe, who points to higher gas volumes in the quarter. Also, spot natural gas prices recovered to a quarterly average of A$9.77 per gigajoule, from A$8.42 per gigajoule in 4Q of FY26. Amplitude is due to report its 1Q performance on Oct. 19. Bell Potter retains a buy call and A$2.45/share price target on Amplitude, which ended Monday at A$1.74. (david.winning@wsj.com; @dwinningWSJ)

1943 GMT - Businesses are looking for an alternative to Nasdaq and the New York Stock Exchange and increasingly turning to the Lone Star State, Texas Stock Exchange CEO James Lee says on CNBC. "The movement of primary listings out of New York and into Texas is underway," he says, following Energy Transfer's Monday TXSE debut. Sunoco, USA Compression, and Dillard's are also moving from NYSE to Texas. The young exchange has also raised $430 million in capital to date, Lee says. "I think we're on the verge of the largest transfer of listings in history," he says. (elias.schisgall@wsj.com)

1502 GMT - Brazilian stocks rally following a conservative surprise in Sunday's general elections. Presidential candidate Flavio Bolsonaro carries momentum in the runoff against leftist incumbent Lula da Silva, while conservative candidates win seats across Congress and state governorships. The results are perceived as market-friendly, fueling bets on reduced government spending and privatization. State-controlled oil producer Petrobras rises 6% in local currency and state bank Banco do Brasil is up 11%. In the private sector, digital bank Nu Holdings rises 14%. The Ibovespa stock index climbs 7%. (paulo.trevisani@wsj.com; @ptrevisani)

1438 GMT - Cenovus Energy is paying a fuller price for Athabasca Oil, but the cost of scaling up is likely worth it, according to TD Cowen's Menno Hulshof. In a report, the analyst says the company is paying a premium for "growth, resource depth and synergy potential." He says that the deal consolidates scalable thermal resources around Cenovus' Christina Lake area operations, with around C$85 million in synergies identified, which "CVE's upstream operating expertise could drive upside beyond." While the C$5.7 billion price tag is higher, Hulshof calls the cost inevitable "given it is one of the last remaining thermal plays and arguably carries a scarcity premium." (adriano.marchese@wsj.com)

1355 GMT - Crude oil futures are lower, with the market seen at a sort of tentative equilibrium, says Aaron Kildow of Sparta Commodities in a note. "An uneasy calm has spread over the market," says Kildow. "Flows from Hormuz continue to impress and news of either Iranian or U.S. forces striking oil tankers no longer seems to have the same impact on oil futures markets as it did before." The U.S. dollar continues to trend stronger, which is applying pressure to the commodities markets as a whole. WTI crude is down 1.6%, and Brent crude is off 0.6%. (kirk.maltais@wsj.com)

1300 GMT - Treasury yields are little changed from the high levels they ended at last week. The U.S.-Iran standoff keeps Brent crude above $100, while odds of a Fed hold this month rise to 81% from 78% Friday. No major data points are on tap today. The Treasury will auction three-year notes tomorrow, followed by a 10-year auction Wednesday and 30-year on Thursday. Fed minutes are due Wednesday. The 10-year yield is at 5.276% and the two-year at 4.821%. (paulo.trevisani@wsj.com; @ptrevisani)

1226 GMT - Cenovus' plan to buy Athabasca Oil is the latest step in a wave of consolidation in Canada's oil sands region. Major Canadian producers are locking up contiguous, long-life oil assets in the region as energy falls under the global spotlight. Domestically, the C$5.7 billion acquisition is bolstered by momentum for key export corridors like the proposed Pacific Link pipeline, which promises faster access to global markets. The deal comes about a year after Cenovus' takeover of MEG Energy, and continues the trend of solidifying its position in Alberta. Cenovus says the acquisition adds 45,000 barrels a day of immediate output and targets 115,000 barrels a day by 2032, allowing it to maximize operational scale, capture C$85 million in annual synergies and capitalize on expanding export access. (adriano.marchese@wsj.com)

1208 GMT - Suncor Energy's sale of interests in Eastern Canadian offshore assets for at least C$1.2 billion makes strategic sense, even if the transaction looks largely net present value-neutral, Raymond James' Michael Barth reckons. Suncor is selling its 48% interest in Terra Nova, 40% interest in White Rose and 38.6% interest in West White Rose offshore assets to Ithaca Energy. Barth notes Suncor also is transferring about C$1.4 billion of liabilities. The assets have a relatively short current life, and an exit frees up cash for share buybacks or accelerated growth in Suncor's core portfolio, the analyst says. Raymond James retains an outperform call and C$118 target on Suncor's shares. (robb.stewart@wsj.com)

0951 GMT - European energy majors' earnings are set to more than double on the same period last year, Barclays analyst Lydia Rainforth writes. The sector should report earnings close to $35 billion with underlying free cash flow around $45 billion, she says. The benchmark refining margin is at unseen levels of around $40 a barrel, which, coupled with trading, will drive downstream earnings, she adds. Meanwhile, European natural gas prices are the key driver of upstream earnings, she says. (adam.whittaker@wsj.com)

0849 GMT - Ithaca Energy's deal to buy Suncor's offshore Canada assets lifts its medium-term outlook to 140,000 to 150,000 barrels of oil equivalent a day from 120,000 barrels a day, Barclays analyst Naisheng Cui writes. The London-listed energy company expects to become the fifth​-​largest operator offshore Canada by production, which gives it a platform for future consolidation and growth opportunities across North America, he adds. Shares rise 3.1% to 284 pence.(adam.whittaker@wsj.com)

(END) Dow Jones Newswires

October 06, 2026 04:20 ET (08:20 GMT)