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

1105 ET - The re-acceleration of energy inflation in the U.K. begs the question whether there should be larger indirect and second-round effects in inflation forecasts, say Barclays economists Cian Hennigan and Jack Meaning in a note. They now expect inflation to average 3.1% in 2026 and 3.0% in 2027, an upward revision of 0.1 and 0.5 percentage points respectively. Annual energy inflation rose to 13.8% in August from 9.8% in July. However, the rise in Bank of England's key interest rate they pencil in to 4.25% by February would create a meaningful amount of increased restrictiveness, weighing on the outlook for inflation, they say. Still, the loose labor market is containing risks of second-round effects, they say. (edward.frankl@wsj.com)

1006 ET - U.S. natural gas futures are higher and looking to end the week with gains as extended summer weather keeps up cooling demand in the southern half of the country. National demand is expected to remain high the next couple of days, then moderate before dropping off toward the end of next week, according to NatGasWeather.com. "The overnight data was little changed, thereby maintaining bearish weather patterns for the 3-20 day forecast period," the forecaster adds. Nymex gas is up 0.8% at $2.924/mmBtu. (anthony.harrup@wsj.com)

1004 ET - The Norwegian krone could trade sideways near-term as the positive impact of elevated energy prices offset weaker risk sentiment and U.S. interest rate rise expectations, Danske Bank's Mohamad Al-Saraf says in a note. "We still see the global environment as the key near-term driver, with Federal Reserve expectations, risk sentiment and, not least, energy markets being the main factors to watch." Danske maintains a neutral krone stance for now. However, it expects the krone weaken further out due to Norway's high unit labor costs, declining interest rate differential compared to peers and expected easing of energy prices. The euro trades flat at 10.8070 krone and Danske expects it to reach 11.50 in 12 months. (renae.dyer@wsj.com)

1000 ET - Oil futures are mixed with WTI rising and Brent slightly lower in early U.S. trading. The selloff the previous two sessions has slowed on news that Saudi Arabia notified European customers they won't be receiving any crude next month due to the damaged East-West pipeline, and an attack on a tanker in the Strait of Hormuz, Dennis Kissler of BOK Financial says in a note. Near-term supplies remain tight, and the over $5.00/barrel spread between Oct/Nov WTI is keeping traders on the buying side, he adds. WTI for October delivery is up 1.3% at $103.20 a barrel ahead of Tuesday's expiration, and the most-active November contract gains 0.6% to $97.84. November Brent is off 0.1% at $104.64. (anthony.harrup@wsj.com)

0822 ET - Oil prices could remain above $100 a barrel well into next year if the Middle East conflict drags on for longer and flows don't recover by the end of 2026, according to Capital Economics. "Houthi advances in Yemen and a lack of progress on the diplomatic front raises the risk of a more severe and longer conflict than our working assumption," says senior economist Hamad Hussain. In afternoon European trading, Brent crude is down 1% to $103.78 a barrel, while WTI falls 0.1% to $101.83 a barrel. (giulia.petroni@wsj.com)

0757 ET - There is potential for Carnival to modestly beat 3Q EPS expectations, as better-than-expected yields more than offset higher fuel costs, according to William Blair in a note. Analysts Sharon Zackfia and Francis Tian expect net yields to rise about 2%, topping Wall Street estimates for a 1% increase, on the back of stronger-than-anticipated last minute booking demand and continually strong onboard spending trends. The upside would put Carnival in a good position to potentially raise its full-year net yield outlook, they say, even as higher fuel prices continue to pressure earnings. Carnival is scheduled to report 3Q results on Sept. 29. (connor.hart@wsj.com)

0736 ET - Canada's newly announced Productivity Mega Deduction serves as an immediate capital allocation catalyst for domestic energy producers, says Robert Mann of Desjardins. In a report, the analyst says that the policy unveiled at the Canada Investment Summit "provides further runway behind the increasingly constructive policy backdrop emerging in Canadian energy." In particular, it will be relevant for "producers actively deploying capital into growth and development projects." Paired with recent permitting and royalty reforms, the shift enhances Canada's competitiveness and supports positive final investment decisions for upcoming projects, Mann says.(adriano.marchese@wsj.com)

0541 ET - Harbour Energy's exposure to European gas prices will turbocharge free cash flow generation, BofA analyst Cian Evans-Cowie writes as he upgrades the stock to buy from neutral with a new target price of 350 pence, from 280 pence. Shares have lagged peers despite having the highest free cash flow sensitivity to European gas prices, he says. Harbour's free cash flow for 2026 could be around $2.65 billion, which implies a more than 45% upside to the company's guidance, he says. This cash can be used to pay down net debt, which is seen falling more than 30% by end of 2026, he adds. This will then free up more cash to return to shareholders, he says. Shares rise 2% to 277.00 pence. (adam.whittaker@wsj.com)

0436 ET - TKMS offers exposure to Europe's naval rearmament and undersea warfare modernization, Stifel says in a note initiating the stock at buy. The German naval defense company is capable of more than doubling its secured revenue base, with more than 25 billion euros of backlog and a mature pipeline, according to analyst Thomas Mordelle. "Submarine design authority, pressure-hull manufacturing, acoustic engineering and naval combat-system integration are among NATO's scarcest capabilities," Mordelle says. Naval demand is rising faster than available capacity and TKMS is positioned to benefit as it moves beyond platform manufacturing into becoming a sovereign maritime systems integrator, Stifel says. Stifel sets a target of 105 euros. TKMS shares trade 2.3% higher at 87.30 euros. (sarah.sloat@wsj.com)

0325 ET - European energy stocks open lower Friday morning as oil prices continue to slide. The pullback in prices largely reflects a perception that geopolitical risks are moderating, MUFG's Soojin Kim writes. Diplomatic efforts are stepping up while China and other partners are reported to have urged Iran to restrain Houthi attacks near Bab el-Mandeb Strait, Kim adds. This pushes Brent crude down 1.9% to $102.87 a barrel while WTI falls 1.7% to $100.15 a barrel. In London, Shell and BP both fall around 1%. Spain's Repsol drops 1.5% and Italy's Eni is 1.4% lower. Norway's Equinor falls 0.5%.(adam.whittaker@wsj.com)

0319 ET - Bitcoin rises modestly following gains on Wall Street overnight driven by a rally in tech stocks. Investors buying shares of companies tied to artificial intelligence boosted tech stocks, leading U.S. stock indices higher. An easing of oil prices is also supporting risk sentiment. Lower oil prices reflect some profit taking and reports that Saudi Arabia could soon restore some flows through its damaged East-West pipeline which was closed after a drone attack from Iraq. Bitcoin rises 1.1% to $77,392, LSEG data show. (renae.dyer@wsj.com)

0313 ET - Oil prices extend losses from the previous session, with Brent crude now at around $102 a barrel amid efforts to restore Saudi export capacity. "Supply concerns have eased as Saudi Arabia works to restore its damaged East-West pipeline," says Soojin Kim, analyst at MUFG. "The recent decline in spot oil prices largely reflects a perception of moderating geopolitical risks, but continued threats to both Hormuz and Red Sea routes should keep Brent above pre-war levels and volatility elevated." In early European trading, Brent falls 2.2% to $102.54 a barrel and is on track for a weekly loss of nearly 2%, while WTI futures are down 1.9% to $99.97 a barrel. Attention now shifts to the United Nations General Assembly in New York next week, as the U.S. has reportedly agreed to let Iran's leaders participate.