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

0322 GMT - Malaysia's exposure to oil-price shocks is expected to remain moderate and manageable, RHB Chief Economist Barnabas Gan says in a note. Higher oil prices support fiscal revenue through stronger petroleum receipts and potentially larger dividends from Petronas, while lower prices provide relief by reducing fuel-subsidy costs, he says. Malaysian crude grades have continued to command significant premiums over global Brent benchmark, helping cushion revenue losses from lower outright oil prices, he says. Although these premiums are likely to normalize as geopolitical tensions ease, they have provided a buffer for export earnings and fiscal revenue. RHB expects Brent crude to fall to $85 a barrel by end-2026 and $75 a barrel by end-2027, assuming a renewed easing of geopolitical tensions. (yingxian.wong@wsj.com)

0245 GMT - Hanwha Ocean's earnings could be pressured by a stronger won, says Eon Hwang at Nomura. The analyst cuts his operating-profit forecasts for the South Korean shipbuilder by 9.3% for 2026, 13.5% for 2027 and 11.5% for 2028, citing the won's appreciation against the dollar. Hwang expects Hanwha's new shipbuilding contracts to rise about 47% to $14.7 billion this year. A decline in new containership orders is likely to be offset by an increase in new LNG vessel orders, he says. Meaningful new orders from the U.S. Navy are unlikely, given congressional opposition to constructing naval ships overseas. Nomura cuts its target price for Hanwha to 56,000 won from 63,000 won and maintains a reduce rating on the stock. Shares are last 3.8% lower at 84,800 won.(kwanwoo.jun@wsj.com)

0214 GMT - The Johor Bahru-Singapore rapid transit system link will likley drive another construction boom in the Malaysian city, with its planned opening in late 2026 or early 2027 set to transform Bukit Chagar into a major transport hub, Maybank IB analyst Yin Shao Yang says in a note. Nearby developments valued at more than 11 billion ringgit could benefit from stronger pedestrian traffic, cross-border commuting, retail spending and property demand, he says. Sunway Construction likely a key beneficiary, with a possible 1.0 billion ringgit contract from a MRT Corp joint venture potentially adding about 60 million ringgit to net profit. The proposed 10 billion ringgit Johor elevated transit network could further boost construction across Greater Johor Bahru when completed in 2030-2031, he adds. Maybank maintains its positive rating on Malaysia's construction sector. (yingxian.wong@wsj.com)

0114 GMT - Korea Gas is set to benefit from growing earnings contributions from its overseas energy projects, Yuanta Securities Korea' Son Hyun-jeong and Kim Ko-eun. The analysts expect the South Korean state-owned liquefied natural gas supplier's consolidated operating profit to rise 14% to 2.404 trillion won in 2026, with overseas operations accounting for 25% of total profit, up from 15% in 2025. LNG fields in which the company has invested,especially in Canada and Mozambique, have significantly increased production recently, driving earnings growth, they note. Yuanta initiates coverage of the stock with a buy rating and 47,000 won target price. Shares are 0.4% higher at 36,300 won. (kwanwoo.jun@wsj.com)

0006 GMT - Oil rises amid the escalation in Middle East conflict that could exacerbate supply disruptions in the region. The U.S. military said it had destroyed five Iranian tankers in response to attempts to hit a U.S. Navy warship with ballistic missiles, ANZ Research analysts say in a research report. "A senior official from the Islamic republic had said that Iran was ready for a more intense war and will escalate counter strikes if the U.S. continues attacking its territory and infrastructure," the analysts add, citing a media report. Front-month WTI crude oil futures are 1.0% higher at $97.02 per barrel; front-month Brent crude oil futures are 0.6% higher at $101.84 a barrel. (ronnie.harui@wsj.com)

2254 GMT - AGL Energy's bear at Macquarie remains concerned about the power generator and retailer's FY28 outlook. Macquarie reckons consensus expectations for FY27 Ebitda of A$2.04 billion are materially too high. It points out the industry is 57% through the Default Market Offer period for pricing. Macquarie adds the El Nino weather event hasn't materially changed forward electricity markets, while batteries have reduced day-to-day volatility. "Power pricing is likely to stay below A$100/MWh (New South Wales) in FY28 and FY29," Macquarie says. The performance of AGL's power plants in July and August reflects the soft price environment with reduced coal generation, although this is likely reflected in FY27 Ebitda guidance, Macquarie says. It keeps an "underperform" call and A$7.94/share price target on AGL, which ended Wednesday at A$8.78. (david.winning@wsj.com; @dwinningWSJ)

2134 GMT - Mexico's 2027 federal government budget proposal includes transfers of around $4.5 billion to Pemex for debt payments, which puts off plans for the state oil company to be financially self-sufficient by next year. "The lower budget support is an improvement over 2026, but doesn't break the financial link to the sovereign or show that Pemex can finance its operations, investment and financial obligations by itself," analysts at Banamex say in a note. The budget plan sees production of liquid hydrocarbons unchanged from 2026 at 1.8 million barrels a day, while crude oil exports are expected to fall to 426,600 b/d from 522,400 b/d this year. Mexico's average crude price is seen at $61.80 a barrel, down from an estimated $78.40 a barrel for 2026.(anthony.harrup@wsj.com)

1947 GMT - U.S. natural gas futures fall for a second consecutive session as the market looks beyond this week's inventory report to cooler weather that's likely to cut demand heading into the shoulder season. The EIA is expected to report a 28 Bcf increase in underground storage for last week, according to a WSJ survey of analysts. That's smaller than the average 52 Bcf injection and would reduce the inventory surplus over the average to 136 Bcf from 160 Bcf the week before. Nymex natural gas settles down 3.2% at $2.822/mmBtu.(anthony.harrup@wsj.com)

1932 GMT - New York-traded diesel futures settle at their highest level since the start of the Russia-Ukraine war and their second highest ever as the flare-up in the U.S.-Iran conflict pushes up crude prices and threatens further supply loss. "Watch diesel harder than crude. That's where the real squeeze lives," Phil Flynn of the Price Futures Group says in a note. Ukrainian attacks on refineries that have led Russia to halt diesel exports, and Persian Gulf disruptions, are keeping prices high, he says. "Russia can't export diesel. The U.S. and India are running flat-out to fill the gap." Nymex diesel settles up 5.1% at $4.8010 a gallon, its highest close since April 28, 2022. (anthony.harrup@wsj.com)

1925 GMT - Oil futures settle at their highest level since May 22 as strikes between the U.S. and Iran escalate and Houthis step up attacks on Saudi oil facilities. The escalation is cause for concern as inventories are low and drawing down and it doesn't look like the U.S. is making any progress with the conflict, says John Deal, managing director of capital markets at Post Oak Group. "I frankly think we're in really risky territory right now," he says, with significant risk of damage to infrastructure in Saudi Arabia. "I wouldn't be surprised, if this conflict doesn't wrap up soon, I think we could be looking at prices over $100 maybe as high as $120." Brent settles up 3.4% at $101.21 a barrel, and WTI rises 3.2% to $96.05. (anthony.harrup@wsj.com)

1857 GMT - Analysts surveyed by Dow Jones are forecasting inventories and average daily production of ethanol to fall back from the prior week. Analysts forecast that stocks could land anywhere from 24 million barrels to 25.24 million barrels, versus 25.04 million barrels reported by the EIA last week. Average daily production is anticipated to land anywhere between 1.085 million barrels and 1.110 million barrels a day, versus 1.110 million barrels a day reported last week. CBOT corn futures closed trading for the day down 1%. (kirk.maltais@wsj.com)

1844 GMT - Gold futures make small gains despite a rise in Treasury yields after the Treasury Department said it would buy back $6 billion in bonds this week, less than some in the market expected. The dollar weakened, however, which tends to support gold. An easing in Japanese yields and continued central bank buying--with China's central bank adding 20 tons in August--also helped support prices, while the market remains focused on U.S. inflation data later this week, Konstantinos Chrysikos of Kudo.com says in a note. Front month gold settles up 0.5% in New York at $4,416 a troy ounce. Silver gains 2.5% to $67.942 a troy ounce.