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

0244 GMT - The Southeast Asian plantation sector's earnings could continue to grow thanks partly to higher crude palm oil prices, RHB analyst Hoe Lee Leng and her team say in a note. Malaysian palm oil stocks rose 7.5% on month to 2.82 million tons in August and are expected to remain above 2 million tons through 2026 as production peaks in 4Q, they say. With the probability of a very strong El Nino at 95% for the October-December period, its impact on production is expected to be seen mainly from 2027 onward, they add. RHB maintains an overweight rating on the Southeast Asia plantation sector. (yingxian.wong@wsj.com)

0239 GMT - Palm oil rises in early Asian trading, driven by overnight gains in soybean oil on the Chicago Board of Trade. Overall, the market remains constructive, although profit-taking could emerge ahead of the U.S. Department of Agriculture's World Agricultural Supply and Demand Estimates report, which could shift CPO futures expectations through changes in forecasts of global vegetable-oil supply and demand, AmInvestment Bank says. It expects palm-oil prices to face resistance at 4,930 ringgit a ton and support at 4,846 ringgit a ton. The Bursa Malaysia Derivatives contract for November delivery is up 18 ringgit at 4,903 ringgit a ton. (yingxian.wong@wsj.com)

0226 GMT - Malaysian palm oil stocks may remain elevated over the next few months as production enters its peak season, while uneven exports could cap price gains, TA Securities analyst Angeline Chin says in a note. However, a sharp correction is unlikely, with crude palm oil prices expected to stay above 4,000 ringgit a ton, she says. Stronger energy prices could support biodiesel demand, while Indonesia's proposed B60 biodiesal mandate in 2027 may absorb more palm oil and tighten exports, she reckons. El Nino also poses an upside risk to prices, although any significant impact on production could emerge only from 2Q 2027, she adds. TA Securities maintains an overweight rating on Malaysian plantation sector, rates SD Guthrie, Kuala Lumpur Kepong, IOI Corp. and United Malacca at buy. (yingxian.wong@wsj.com)

0223 GMT - HD Hyundai Heavy Industries' engine production capacity is expected to more than double as a result of increased facility investment, Nomura's Eon Hwang says. The analyst expects the shipbuilder to expand its manufacturing capacity for HiMSEN engines, which can power both ships and electricity-generation facilities, to 7.2 gagawatts by 2030 from 3GW currently. Of the total capacity, 4GW is likely to be dedicated to land-based power-engine production, Hwang says. The company's plan to invest 1.072 trillion won to build production facilities in South Korea for power engines and small modular reactors could prompt an earnings upgrade, he adds. Nomura raises its target price for the company to 560,000 won from 550,000 won, keeping a buy rating on the stock. Shares are 7.1% higher at 485,500 won. (kwanwoo.jun@wsj.com)

0204 GMT - Prices of Brent crude oil above $105 per barrel are becoming a broader headwind for assets including equities and precious metals, OCBC Group Research's Christopher Wong says in a research report. Currencies of Asia ex-Japan countries, especially net energy importers like India's rupee, and "high beta" currencies like the Australian dollar and the Korean won have come under some pressure, the FX strategist says.The U.S. dollar edges 0.2% lower to 1,347.30 won, while the Australian dollar is 0.1% higher at US$0.7159, LSEG data show. (ronnie.harui@wsj.com)

0020 GMT - Oil rises in early trade on escalating concerns over supply disruptions in the Middle East. ANZ Research analysts say that reports of Iran-backed Houthi militants seizing the port city of Mokha on Yemen's west coast could give the militants a foothold and enable them to control the Bab al-Mandeb Strait. The strait is a chokepoint for energy exports through the Red Sea. These attacks are weighing on Saudi Arabian oil exports, the analysts say in a report. Front-month WTI crude oil futures are up 0.5% at $103.01 a barrel; front-month Brent crude oil futures are 0.4% higher at $108.10 a barrel. (ronnie.harui@wsj.com)

1937 GMT - U.S. natural gas futures settle modestly higher after the EIA reported a fourth straight below-average weekly storage build, although the 40 Bcf injection landed above market expectations. "With weather-related demand continuing to wane and reduced consumption over Labor Day weekend, we would expect storage injections to trend higher beginning with next week's report," Andy Huenefeld of Pinebrook Energy Advisors says in a note. "From there, builds will ramp until heating demand begins driving more consumption in October." Nymex natural gas settles up 0.4% at $2.834/mmBtu. (anthony.harrup@wsj.com)

1936 GMT - Oil futures rise the their highest level in nearly four months with increased fighting across the Persian Gulf region raising supply worries. "Iran has stated they are ready for a more intense war and President Trump stated the conflict will last into the mid-term elections, which now has solidified the fact that tighter supplies are being priced in for the foreseeable future," Dennis Kissler of BOK Financial says in a note. Futures are in an overbought condition, "with a corrective phase due," he adds. WTI settles up 6.7% to $102.48 a barrel and Brent gains 6.3% to $107.63, their highest closes since May 19. (anthony.harrup@wsj.com)

1759 GMT - Gold futures lose ground as a pickup in U.S. producer price inflation in August raises expectations of a Fed rate increase next week, while conflict escalation in the Middle East pushes up oil prices. "Gold faces a combination of negative factors, driven mainly by the lack of a near-term horizon for settling the Middle East war, along with high escalation risks that fuel waves of bond-yield increase globally," Samer Hasn of XS.com says in a note. Front month gold settles down 1.2% at $4,364.50 a troy ounce. Silver falls 5.4% to $64.284 a troy ounce. (anthony.harrup@wsj.com)

1526 GMT -- Dubai leads most major Gulf stocks lower as escalating U.S.-Iran hostilities and attacks on Saudi Arabia keep regional risks elevated. The Dubai Financial Market General Index falls 0.4%, Qatar's QE Index declines 0.3% and Saudi Arabia's Tadawul All Share Index edges down 0.1%. Abu Dhabi's benchmark index bucks the trend, edging up 0.1%, with major constituent ADNOC Gas rising 0.6%. Disruption in the Strait of Hormuz strengthens the case for ADNOC Gas to have export capacity on the U.A.E.'s east coast as the government considers ways to reduce reliance on the waterway, Barclays analyst Ramachandra Kamath says. (farhan.rafid@wsj.com)

1447 GMT - U.S. natural gas inventories rose more than expected last week, while the increase was small enough to reduce the storage surplus over the five-year average. Underground storage rose by 40 billion cubic feet to 3,254 Bcf, or 148 Bcf more than the 2021-2025 average, the EIA says. The storage injection was larger than the 28 Bcf estimate in a WSJ survey of analysts, but smaller than the five-year average 52 Bcf build for the week. Nymex natural gas futures are off 1.6% at $2.777/mmBtu. (anthony.harrup@wsj.com)

1438 GMT - European energy producers and insurance companies are likely to benefit due to the elevated energy prices and the European Central Bank decision to increase interest rates, eToro's Lale Akoner says in a note. The ECB raised the deposit rate to 2.5% during Thursday's policy decision, as markets expected. Sectors that could be negatively affected by the rate increase include property, housebuilders, smaller companies, and retailers, she says. "Banks may benefit initially from wider lending margins, but that advantage will fade if loan demand weakens and defaults rise."