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

1406 ET - The number of rigs drilling for oil in the U.S. increased by six this week to 462, a sixth consecutive rise to its highest level since May of 2025, according to data from Baker Hughes. The number of rigs was up by 44 from a year ago. The rise in oil prices since the start of the U.S.-Iran conflict has prompted more drilling, with U.S. crude production reaching a record just shy of 14 million barrels a day. The EIA estimates production will average 13.9 million b/d this year and rise to 14.3 million b/d in 2027. Rigs drilling for natural gas slipped by one this week to 132, or 12 more than a year ago. (anthony.harrup@wsj.com)

1101 ET - U.S. airlines are able to bounce back from elevated fuel costs faster this year, thanks to strong demand and a greater focus on profitability, Delta Air Lines Chief Executive Ed Bastian says. He says the company's 4Q guidance, which includes a forecast for 20% revenue growth, is a clear sign of that resilience: "That's a picture of structural durability you have not seen in prior cycles or fuel spikes within this industry," Bastian says during a call with analysts.(kelly.cloonan@wsj.com)

1043 ET - The slump in Canada's labor market in September reduces the likelihood of a Bank of Canada rate increase late this month, but doesn't erase it, Oxford Economics' Tony Stillo argues. He continues to expect sustained inflation risk from higher gasoline prices will prompt the central bank to lift its policy rate a quarter percentage point in October and in December. But rather than starting a new tightening cycle Stillo expects the Bank of Canada will aim to swiftly return the policy rate to a neutral level as a pre-emptive move to ensure the spike in oil prices doesn't cause sustained higher inflation. (robb.stewart@wsj.com; @RobbMStewart)

1007 ET - Natural gas futures are higher after retreating Thursday on a slightly bigger-than-expected weekly storage build, while effects from Hurricane Isaias are seen mixed with small offshore production losses offset by impacts on demand. LNG exports will likely decrease due to shipping delays, and demand is expected to be lost to power outages and flooding, NatGasWeather.com says in a note. "The storm won't contribute much to lost cooling demand due to temperatures already being relatively comfortable," the forecaster adds. Nymex natural gas is up 1% at $3.201/mmBtu. (anthony.harrup@wsj.com)

0935 ET - Oil futures are giving back some of the previous day's gains after President Trump said the U.S. isn't planning to strike Iran before midterm elections on November 3. Trump's comment "has placed the crude markets back on the defensive amid what is likely to be a lull in attacks through the Strait of Hormuz," Ritterbusch & Associates says in a note. Hurricane Isaias prompted U.S. Gulf producers to evacuate platforms, shutting in production, although the storm track lies east of most U.S. Gulf coast refineries. Isaias became a Category 3 hurricane Friday morning, and is expected to make landfall late Friday or early Saturday, according to the National Hurricane Center. WTI is off 0.8% at $90.78 a barrel and Brent is down 1.1% at $103.19 a barrel. (anthony.harrup@wsj.com)

0934 ET - Yields on U.K. government bonds, or gilts, fall faster than their eurozone peers as oil prices decline after President Trump said talks with Iran were going well. "Whilst markets are not holding their breath for a quick resolution to the conflict, it's encouraging that neither side is willing to abandon the negotiating table," XM's Raffi Boyadjian says in a note. News about the U.S.-Iran talks have caused market sentiment to improve. Ten-year gilt yields fall 6.6 basis points to last trade at 5.423%, Tradeweb data show. Ten-year Bund yields fall 4.2 basis points to 3.464%. (miriam.mukuru@wsj.com)

0930 ET - Russia and Ukraine are engaging with other channels to try and get grain shipments out of the besieged Black Sea region. "Russia is increasingly relying on its Baltic Sea ports for this purpose," says Commerzbank in a note, citing a representative from Russian Railways stating that the ports have almost tripled in capacity, to 23.5 million metric tons of grain. Ukraine is attempting to ship more grains via the Danube River, Commerzbank adds. Even so, the flow of grains coming out of the Black Sea region is still much less than this time last year, showing how important the ports that have been damaged this year are to shipping operations. CBOT wheat is down 0.2%, while corn is flat and soybeans rise 0.4%. (kirk.maltais@wsj.com)

0821 ET - Oil prices extend losses in afternoon European trading, even as tensions in the Middle East remain elevated and Hurricane Isaias threatens production in the U.S. Gulf Coast. "Oil futures looked set to finish the week with solid gains but are now more likely to end lower," analysts at brokerage XM say. "Whilst markets are not holding their breath for a quick resolution to the conflict, it's encouraging that neither side is willing to abandon the negotiating table just yet and this is taking the pressure off oil prices today." Brent crude is down 1.4% to $102.79 a barrel, while WTI futures slide 1% to $90.69 a barrel. (giulia.petroni@wsj.com)

0626 ET - Palm oil futures closed lower Friday, reversing earlier gains as optimism over a possible Malaysian export duty waiver faced after the anticipated announcement failed to materialize, says David Ng, a trader at Kuala Lumpur-based Iceberg X. He expects cautious trading as investors assess the upcoming MPOB supply-demand report, particularly September inventories and export performance, he adds. Ng expects crude palm oil futures to find support at 4,500 ringgit a ton and face resistance at 4,750 ringgit a ton. The Bursa Malaysia Derivatives contract for December delivery fell 69 ringgit to 4,592 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0527 ET - The dollar has limited scope to fall as bond markets and risk sentiment remain fragile while the Federal Reserve is expected to raise interest rates again in December, ING's Francesco Pesole says in a note. The dollar has lost some ground as the sharp rise in Treasury yields pauses but there are no signs of broader correction in the currency, he says. President Trump has said the U.S. won't attack Iran before November's midterms "but the oil market is reluctant to price out the geopolitical premium that has kept prices above $100 per barrel." ING expects a slightly stronger dollar in the near term. The DXY dollar index falls 0.1% to 102.046 after hitting a near 18-month high of 101.535 Monday. (renae.dyer@wsj.com)

0359 ET - Brent's risk premium reached an estimated $22 a barrel in September, the second-highest monthly level on record, reflecting persistent fears of disruptions in the Middle East and demand for oil as a portfolio hedge. "The peak monthly risk premium estimate during the outbreak of the Russia-Ukraine war in 2022 did not exceed $16/bbl, highlighting how unprecedented this year's oil supply shock has been," analysts at the bank say. OECD commercial stocks remain a key driver, with a 100 million-barrel decline in inventories raising Brent's fair value by nearly $8 a barrel. Meanwhile, investors often increase oil exposure to hedge against losses in equity and bond portfolios during supply shocks, as higher oil prices fuel inflation concerns and weigh on traditional asset returns, Goldman says. (giulia.petroni@wsj.com)

0337 ET - EU approval for MMG's acquisition of Anglo American's Brazilian nickel business would be "the very best outcome" for European stainless steel customers and for the company's workers in Brazil, the London-listed mining company's chief operating officer Ruben Fernandes says. His comments come on the back of a closed-door hearing with EU merger officials Thursday, who have raised concerns the transaction could divert supplies from Europe to China. "Prohibition means that we will head towards 'care and maintenance' as the pathway to closure of the operations in Brazil. That would be the ultimate lose-lose outcome," he says, adding that Anglo American presented "the clear realities of the market during the hearing."