U.S. crude slips after EIA reports 3.2 million-barrel draw

The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day. S. 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. 899 a troy ounce. S.

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.

75 a barrel. S. dollar gains and the market looks to minutes of the Fed's latest meeting to gauge prospects for interest rates. 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. 20 a troy ounce. 16 a troy ounce. 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.

7%. Banks also drop sharply as higher oil prices and fiscal concerns weigh on the broader European sector. 4%. 8%.

7%, on track to close at its lowest level since June 5. 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. 3%.

The index also suffers from a selloff in AI-related stocks. 3%. 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. S.

S. Gulf coast. S. coast late Friday, according to the National Hurricane Center, although the projected path has shifted east of the main oil-producing areas.

3 billion cubic feet of natural gas. 76 a barrel. com) 0944 ET - UBS raises its December oil price forecast by $5 a barrel, citing continued declines in inventories and escalating attacks in the Strait of Hormuz, which have prompted markets to price in a higher geopolitical risk premium. The bank now expects Brent crude to reach $100 a barrel by year-end, while WTI is forecast at $96 a barrel.

The outlook, however, remains highly uncertain, reflecting the unpredictable course of the conflict in the Middle East and the pace of recovery in Gulf production, UBS says. com) 0931 ET - Europe's planned release of strategic oil stockpiles might not translate into an immediate boost to supply, says Giovanni Staunovo from UBS. , European inventories are spread across hundreds of locations and managed by governments, central stockholding agencies and private industry.

Releases are often carried out by reducing mandatory stockholding requirements--such as the number of days of net imports or domestic consumption that companies must hold--rather than by directly selling barrels into the market, the strategist says. The process is further complicated because some European countries store strategic stocks in other nations. "As a result, lower mandated stockholding requirements may not translate into a complete and immediate increase in supply to the physical market," Staunovo says. S.

S. Gulf coast as a hurricane later this week. The storm could potentially affect nearly 10 Bcf of gas output by the end of the week, Gary Cunningham of Tradition Energy says in a note. " Production losses could be offset on the demand side by cooling wind and rain and possible shut-in LNG production, he adds.

com) 0921 ET - LNG markets are likely to remain tight into next year, with restricted Strait of Hormuz transit expected to constrain Qatar's exports until at least the first quarter, ANZ analysts say. Asia is bearing most of the demand adjustment, with higher LNG prices encouraging switching to coal in power generation and fuel substitution in industry, particularly in India and China. Europe, meanwhile, is relying more heavily on storage drawdowns and reduced industrial consumption to balance the market amid higher prices. A colder winter, weaker wind generation or stronger Chinese buying could intensify competition for LNG cargoes.

"While the LNG market can absorb the loss of Qatari supply, the adjustment will be achieved through demand destruction, lower inventories and sustained high prices rather than a material increase in available supply," the analysts say. com) 0907 ET - Emera's merger with Canadian Utilities offers greater scale and diversification, but there are some drawbacks. " He says that Florida is one of North America's most attractive utility jurisdictions given the state's strong economic and population growth, but following the transaction, Florida's contribution to rate base is expected to decline to 46% from 73%.

However, the positives will be in expanded scale, diversification over the longer-term, as well as adding concentrated exposure to Alberta where Mould sees a robust economy and opportunity to outperform at distribution utilities. "We expect modest low-single-digit EPS accretion, albeit under conservative assumptions," Mould adds. com) (END) Dow Jones Newswires October 07, 2026 13:58 ET (17:58 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters.

Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.