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

0910 ET - Oil futures are lower for a third consecutive session with the market optimistic about the amounts of crude being shipped out of the Persian Gulf. Improving confidence in near-term supply suggests further declines are likely, but limited by continued geopolitical risk, BankPro CEO Paolo Broccardo says in a note. "Shipping through the Strait of Hormuz still faces constraints, while rising tensions in the Red Sea fuel concerns," he says. The stalemate in U.S.-Iran negotiations "also leaves no clear path towards a full normalization of regional traffic." WTI is down 2.4% at $87.26 a barrel and Brent is off 2.7% at $97.58 a barrel. (anthony.harrup@wsj.com)

0858 ET - Treasury yields slip as a global bond selloff eases amid a 3% decline in oil prices. Borrowing costs, however, remain close to recent highs, as markets worry about inflation, government spending and corporate borrowing. The U.S. trade deficit widens more than expected in August, to $105.6 billion. The Treasury is auctioning $58 billion in three-year notes and elevated yields are expected to ensure robust demand. The 10-year yield trades at 5.273%, down from yesterday's settlement of 5.310%, which was the highest since April 2002. The two-year falls to 4.785% from 4.831%. (paulo.trevisani@wsj.com; @ptrevisani)

0614 ET - Palm oil prices ended lower as profit-taking activities emerged following Monday's strong rebound, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Softer crude oil prices and concerns over elevated domestic inventories weighed on sentiment, he adds. Ng sees prices to find support at 4,500 ringgit a ton and face resistance at 4,650 ringgit a ton. The Bursa Malaysia Derivatives contract for December delivery ended 18 ringgit lower at 4,560 ringgit a ton.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

0359 ET - European natural-gas prices rise in early trading as the market remains vulnerable despite a recent recovery in LNG flows from the Persian Gulf. EU gas storage is just shy of 73% full, well below 83% at the same point last year and the five-year average of 88%, according to ING. While injections have exceeded seasonal averages through September, the region is still likely to fall short of storage targets before winter, leaving it exposed to supply disruptions and price volatility. Weather will be key to determining market tightness over the heating season. A strong El Nino could increase the likelihood of a milder winter, easing heating demand and pressure on inventories, analysts at the firm say. The benchmark Dutch TTF contract rises 3.4% to 76 euros a megawatt-hour. (giulia.petroni@wsj.com)

0352 ET - Demand related to artificial intelligence has driven up corporate goods prices in Japan markedly since early 2026, but its impact on consumer prices is likely limited, Mizuho Securities economists say. Because AI-related cost increases affect only certain durable consumer goods, even under the strong assumption that all costs are passed on to consumers, the upward effect on the consumer-price index appears constrained, they say. "At least from a cost-push perspective, treating inflation risks from AI-related demand on a par with high energy prices or a weaker yen goes too far," they add. In Tuesday's speech, BOJ Gov. Kazuo Ueda reiterated that AI demand is one of the factors pushing up Japan's inflation, along with higher oil costs and the yen's depreciation. (megumi.fujikawa@wsj.com)

0342 ET - Oil prices are falling, with U.S. benchmark WTI slipping below $90 a barrel as immediate supply concerns ease following an increase in Middle East exports and the release of G-7 emergency stockpiles. In early European trading, Brent crude was down 0.3% at $100.07 a barrel, while WTI futures fell 0.6% to $88.92. "Oil producers in the Persian Gulf continue to adapt to the region's situation," analysts at ING say. "Kuwait said that it is producing at 75% of pre-war levels, while the Saudis also cut the official selling price of their Arab Light into Asia for November loadings, a sign of an improving supply picture." Still, tensions remain elevated. Saudi and Yemeni forces have launched a counteroffensive to oust Houthi militants from the strategic port city of Mokha, which the group has used to expand its control near the Bab al-Mandeb chokepoint, a key transit route for energy exports through the Red Sea.(giulia.petroni@wsj.com)

0252 ET - Schneider Electric's deals to buy PTC and Cognite change the investment case on the French engineering group to make it more reliant on its less attractive industrial-automation division, J.P. Morgan analysts say. JPM cuts its recommendation on Schneider to neutral from overweight, while trimming its price target to 310 euros from 345 euros. Schneider is spending big on its industrial automation division, with $27 billion allocated to the unit through the PTC and Cognite acquisitions, but this dilutes strong growth at its energy-management division that made the group an attractive investment, the analysts say in a research note. JPM says its preference in the industry shifts to Schneider's smaller French peer Legrand. Shares in Schneider closed 10% lower Monday at 272.80 euros. (adria.calatayud@wsj.com)

0237 ET - SK Innovation is likely to benefit from higher lubricant base oil prices, LS Securities analyst K.H. Chung says. The South Korean refiner is a global leader in premium lubricant base oils, producing about 80,000 barrels of Group III base oils a day, Chung writes in a note. She expects the supply shortage of lubricant base oils to persist for more than a year. Tight supply of kerosene and diesel and wider refining margins could also continue to boost the company's earnings, she adds. LS Securities upgrades the stock to buy from hold and raises its target price to 187,000 won from 126,000 won. Shares end 2.6% higher at 158,000 won. (kwanwoo.jun@wsj.com)

0139 ET - The U.S. Treasury yield steepens, with short-end yields falling and intermediate- and long-end yields rising in Asian trade as the bond selloff continues. Long-end yields are up on the day but remain below Monday's multidecade highs as the price of Brent oil hovers around $100 per barrel. The two-year Treasury yield declines 0.4 basis points to 4.828%, according to Tradeweb, as expectations of a Federal Reserve rate hike in October have retreated in recent days. Money markets currently price in a 24% probability of a 25-basis-point Fed rate hike this month, well below the 70% level seen Monday last week. The 10-year yield is up 0.4 basis points at 5.314%, while the 30-year yield is up 0.9 basis point at 5.672%, according to Tradeweb. (emese.bartha@wsj.com) Corrections & Amplifications

This item was corrected at 1:56 a.m. ET. The original version incorrectly said the 30-year yield was up 9 basis points.