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

2009 ET - Oil rises in early Asian trade amid rising Middle East tensions that could intensify supply-disruption fears. Attacks claimed by Houthi militants damaged two airports in Saudi Arabia. The Houthis have taken a lot of territory in a recent offensive against Saudi-backed Yemeni forces, giving the group more control over Bab al-Mandeb Strait, a vital chokepoint for global energy market. "Renewed Houthi attacks in Saudi Arabia as well as storm-related U.S. Gulf production shut-ins" have helped boost oil prices, InTouch Capital Markets' analysts say in commentary. Front-month WTI crude oil futures are 1.0% higher at $89.14 per barrel; front-month Brent crude oil futures are 1.0% higher at $101.24 a barrel. (ronnie.harui@wsj.com)

1810 ET - Infratil's bull at Citi looks past headwinds buffeting the valuation of its CDC data-center business recently. Infratil said the latest valuation of CDC was A$18.5 billion, down 0.4% from end-June. It cited the effects of a material rise in the forward yield curve, resulting in higher assumed interest costs. "While elevated interest rates represent a clear macro headwind to valuation multiples, CDC's underlying operational momentum remains robust," analyst Suraj Nebhani says. Infratil's share price has trended lower since its July high, down some 14%. It means the stock trades at a more than 30% discount to net asset value, which Citi finds attractive. "Supported by ongoing CDC de-risking and Longroad's energy and data center pipeline execution, we see compelling risk-reward and reiterate our 'buy' rating," Citi says. (david.winning@wsj.com; @dwinningWSJ)

1628 ET - Oil futures give up early gains and settle lower as the market remains optimistic about crude flows out of the Middle East, although continuing conflict in the region limits pullbacks. WTI fell 1.3% to $88.28 a barrel despite an unexpected 3.2 million barrel weekly inventory draw reported by the EIA and production being shut in as Tropical Storm Isaias is seen reaching the U.S. Gulf coast as a hurricane on Friday. The U.S. Marine Minerals Administration said 511,619 barrels a day, or 25% of current Gulf production, had been shut in as of midday Wednesday. Brent crude settles down 0.4% at $100.20 a barrel. (anthony.harrup@wsj.com)

1533 ET - U.S. natural gas futures settle higher for a fourth straight session as cooler weather forecasts favor early-season heating demand, which could limit storage builds for the remainder of the injection season. The EIA on Thursday is expected to report a 79 Bcf inventory build for last week, according to a WSJ survey of analysts. That would reduce the storage surplus over the five-year average for an eighth consecutive week. "After cooler trends the past few days, it's likely there won't be a [weekly] build over 100 Bcf this shoulder season," NatGasWeather.com says in a note. The market is also watching Tropical Storm Isaias that's expected to reach the U.S. Gulf coast Friday as a hurricane. The storm could affect offshore production and LNG operations, but "impacts from cooler temperatures and rain won't be as notable as they would be in July through mid-September when a tropical system would bring relief from heat," NatGasWeather.com adds. Nymex natural gas settles up 2.9% at $3.2030/mmBtu. (anthony.harrup@wsj.com)

1403 ET - As Treasury yields remain elevated, some Fed officials have been asked whether this means the market is doing some of the tightening for them. Tighter financial conditions mostly reflect expectations for higher policy rates, according to a note from Capital Economics. If central banks don't deliver them, tightening might be unwound. "We think that central banks are unlikely to hike interest rates as far as investors currently expect in the year ahead," the note says. Capital Economics says that's because energy prices may fall next year, therefore second-round effects will fail to materialize.(jessica.coacci@wsj.com)

1358 ET - Gold futures post their third decline in four sessions as the U.S. dollar gains and buoyant U.S. yields keep a lid on demand for the metal with the market looking to the Fed minutes for interest-rate guidance. Earlier gains in oil prices had put pressure on precious metals, given the inflationary implications of higher energy costs. Front-month gold settles down 1.1% in New York at $4,113.80 a troy ounce and silver falls 2.1% to $59.899 a troy ounce. (anthony.harrup@wsj.com)

1316 ET - U.S. benchmark crude slips after the EIA reported a 3.2 million barrel withdrawal in commercial crude oil stocks for last week, despite expectations for a third consecutive weekly build. Product inventories were mixed with gasoline stocks up by 382,000 barrels and distillate stocks down by 42,000 barrels. "Oil stockpiles remain tight but the crunch isn't clearly getting worse," says David Russell of TradeStation. The inventory drop was the result of an adjustment "so it may overstate the magnitude of the draw," he adds. WTI is off 0.7% at $88.79 a barrel and Brent is up 0.2% at $100.75 a barrel. (anthony.harrup@wsj.com)

1213 ET - Gold futures are lower as the U.S. dollar gains and the market looks to minutes of the Fed's latest meeting to gauge prospects for interest rates. "A more hawkish reading, showing persistent concern over inflation and limited appetite for easier monetary policy, could lift Treasury yields and the U.S. dollar, increasing the opportunity cost of holding non-yielding gold and creating near-term downside pressure," Naeem Aslam, chief investment officer at Zaye Capital Markets says in a note. A more dovish interpretation "could pull real yields lower and strengthen demand for bullion." Gold for December delivery is down 1.3% in New York at $4,132.20 a troy ounce. Silver is off 2.3% at $60.16 a troy ounce. (anthony.harrup@wsj.com)

1135 ET - Italy's premier stock index wipes out its summer gains, falling to lows last seen in June as tumbling banking and AI-linked stocks weigh. Stocks linked to the AI buildout fall sharply, with semiconductor-testing company Technoprobe down 6.3%, while electrification group Prysmian falls 4.7%. Banks also drop sharply as higher oil prices and fiscal concerns weigh on the broader European sector. Banca Monte dei Paschi di Siena falls 4.1%, while UniCredit loses 4.4%. Banca Mediolanum falls 3.8%. The FTSE MIB drops 2.7%, on track to close at its lowest level since June 5. (josephmichael.stonor@wsj.com)

1102 ET - France's CAC 40 index of blue-chip stocks falls to its lowest level since March as inflation fears, higher oil prices and a tech selloff combine to weigh on the index. Banks lead a sharp fall in the index, as heightened concerns about France's budget deficit put upward pressure on French borrowing costs. Societe Generale drops 5.7%, while BNP Paribas loses 4.3%. The index also suffers from a selloff in AI-related stocks. Electrical infrastructure groups Legrand and Schneider Electric drop 4.6% and 2.9%, respectively, while chip maker STMicroelectronics falls 3.3%. The CAC 40 falls 1.4% to 7,755.07 points, on track for its lowest close since March 27, according to LSEG. (josephmichael.stonor@wsj.com)

1056 ET - Power utilities will remain critical for the expansion of AI infrastructure despite the growing number of dedicated electricity generators being built near data centers, Joseph DeCampo, a managing director at investment bank Moelis & Company, says during an industry conference. "While they may start off as behind-the-meter or off-grid projects, data centers ultimately would like to be tied into the grid," DeCampo says. Data centers would be reluctant to rely on off-the-grid power installations alone partly because of their high reliability requirements, other panelists say. That puts utilities in the best position to benefit from surging demand for electricity to power AI systems, DeCampo says. "[Utilities] understand the grid better than anybody out there," he says. "They are the ones who ultimately benefit from the longer-term [power] trends." (luis.garcia@wsj.com; @lhvgarcia)

1033 ET - Oil futures are higher in early U.S. trading with continuing tensions in the Middle East and the market watching the storm heading for the U.S. Gulf coast. Tropical Storm Isaias is expected to be a hurricane when it reaches the U.S. coast late Friday, according to the National Hurricane Center, although the projected path has shifted east of the main oil-producing areas. Consulting firm Earth Science Associates estimates the storm could result in shut-in production of about 11.2 million barrels of oil and 13.3 billion cubic feet of natural gas. Front month WTI is up 0.6% at $89.98 a barrel and Brent gains 1.2% to $101.76 a barrel.