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

2153 ET - Petronas could maintain its net cash position this year and improve gross leverage, supported by higher oil prices and stronger upstream realizations, CreditSights analysts Nicole Chua and Lakshmanan R say in a note. Revenue and Ebitda are expected to rise by mid-teen percentages, while free cash flow should be aided by stable annual capital expenditure of about 50 billion ringgit, they say. Petronas' strong credit profile, state support and integrated operations should remain supportive. However, the prolonged dispute with Sarawak over petroleum and gas rights remains an overhang and could weigh on investment decisions and counterparties' confidence. CreditSights maintains a market perform recommendation and views Petronas' bonds as fairly valued versus Pertamina. (yingxian.wong@wsj.com)

1936 ET - Oil futures fall in early Asian trade on a likely technical correction after the futures rose for a third consecutive session on Wednesday. However, losses may be limited by ongoing worries over a further escalation in strikes between the U.S. and Iran and oil flows out of the Middle East. Data released by the EIA overnight showed U.S. crude oil inventories fell more than anticipated last week. Commercial crude oil stocks excluding the Strategic Petroleum Reserve fell 4.5 million barrels in week ended Aug. 28, compared with expectations for decline of 300,000 barrels in WSJ survey of analysts. Front-month WTI crude oil futures are 0.4% lower at $90.68 per barrel.(ronnie.harui@wsj.com)

1528 ET - U.S. natural gas futures advance as late-summer heat and LNG exports support demand. Weekly storage data due Thursday are expected to show a reduction in the inventory surplus over the five-year average, and a widening of the deficit over the year-ago level. Analysts in a Wall Street Journal survey expect a storage build of 29 Bcf, smaller than the 37 Bcf average for the week. "Weather-driven consumption is expected to decline more sharply next week, which should eventually create room for larger builds, but the near-term storage trajectory remains tighter than the broader supply backdrop suggests," Gelber & Associates says in a note.Nymex natural gas settles up 1.8% at $2.956/mmBtu. (anthony.harrup@wsj.com)

1523 ET - Oil futures rise for a third straight session as strikes between the U.S. and Iran raise concerns about further escalation and oil flows out of the Persian Gulf. The EIA reported a bigger-than-expected 4.5 million barrel draw in U.S. commercial crude oil stocks for last week, while the Department of Energy released another 3.1 million barrels from the Strategic Petroleum Reserve. The withdrawal "keeps attention on the increasingly tight market dynamics," says David Russell of TradeStation. Diesel stocks are at the lowest on record for the time of year as farmers and truckers enter their high-demand season, he adds. "Supply and demand fundamentals are taking over as government intervention loses effect and the SPR reaches critical levels." WTI settles up 0.9% at $91.01 a barrel and Brent rises 1% to $95.63. (anthony.harrup@wsj.com)

1357 ET - Gold futures snap a three-session losing streak as Treasury yields ease. The market is closely watching for Friday's employment report, where a strong jobs showing could add to Fed rate-hike expectations. ADP reported a smaller-than-expected 38,000 increase in private-sector jobs in August. "Softer data can ease the downside risk, while stronger figures or more hawkish Fed comments may trigger additional weakness," Konstantinos Chrysikos of Kudo.com says in a note. Front month gold rises 0.4% to $4,366.30 a troy ounce. Silver edges up 0.2% to $64.723 a troy ounce. (anthony.harrup@wsj.com)

1308 ET - Diesel prices are back on the rise as the Middle East conflict flares up, sending refining margins for the fuel to record levels. "While Iran and the logistical constraints for shipping in the Middle East are primarily in focus, the diesel narrative continues to also be written by the war in Ukraine and the destruction of Russian refinery infrastructure," says Matt Muenster, chief economist at transportation technology firm Breakthrough. While Russia bans diesel exports, the U.S. has been exporting record amounts of the fuel. "These dynamics and the expected demand growth from U.S. agricultural production through harvest season will keep diesel supported at exceptionally high prices this fall," Muenster says. "Continued pressure on diesel prices reinforces expectations that freight transportation costs will keep contributing to broader inflation across the economy." (anthony.harrup@wsj.com)

1303 ET - Escalating hostilities between the U.S. and Iran have pushed crude prices higher, giving grain futures a boost, most notably corn. Corn is used as the main feedstock for ethanol in the U.S. which is blended into motor vehicle fuel. EIA data shows current ethanol stocks at 25.04 million barrels--11% more than this time last year, while average ethanol output is up 3.3% from the prior year and up nearly 10% from the 5-year-average. (kirk.maltais@wsj.com)

1211 ET - Oil prices rise in volatile trade, with Brent crude above $95 a barrel after U.S. crude stockpiles saw a larger-than-expected drop last week. Brent is up 0.9% to $95.50 a barrel, while WTI futures rise 0.5% to $90.67 a barrel. Renewed military strikes between the U.S. and Iran are dimming hopes for a near-term resolution of the conflict and reopening of the Strait of Hormuz, keeping the geopolitical risk premium high. Meanwhile, according to the EIA, commercial crude oil stocks excluding the Strategic Petroleum Reserve were down by 4.5 million barrels in the week ended Aug. 28, compared with expectations of a 300,000-barrel fall. "Oil is now more than 30% higher since the conflict began in February, with refined-product markets facing even greater tightness," says Soojin Kim from MUFG. (giulia.petroni@wsj.com)

1118 ET - Higher fuel prices are set to add renewed upward pressure to Dubai inflation in September, Emirates NBD Research says. UAE fuel prices rose for a second consecutive month, with Super 98 gasoline increasing 5.6% on month to AED3.80 a liter and diesel jumping 13%. The increases track higher global oil prices and should push Dubai inflation higher after it moderated in July, the Dubai-based bank's senior economist Daniel Richards says. The rise comes as renewed U.S.-Iran tensions have rebuilt the geopolitical risk premium in crude markets. (farhan.rafid@wsj.com)

1113 ET - With its output still well below historical levels and no immediate OPEC constraint on growth, Venezuela would have little to gain commercially from leaving the cartel in the short term, Kpler's Homayoun Falakshahi says. Production has risen from roughly 700,000 barrels a day in January to around 1.2 million now, but is expected to reach only 1.4 million by late 2027. That should keep Caracas comfortably within its current quota exemption for at least the next two to three years, limiting any near-term cost from remaining in the group. Meanwhile, the Hunt Oil agreement could pave the way for more upstream deals in early 2027, but any meaningful impact on production is unlikely to emerge until later in the decade, the senior commodity analyst says. (giulia.petroni@wsj.com)

1102 ET - Middle East-linked air-cargo routes remain under pressure even as global freight demand continues to grow, the International Air Transport Association says. Global cargo demand rose 3.9% on year in July, but traffic on the Europe-Middle East corridor fell 16.1% and Middle East-Asia volumes dropped 14.1%, marking a fifth consecutive month of contraction for both routes. Middle Eastern carriers overall recorded 1.7% demand growth while capacity increased 4%. Higher fuel prices and geopolitical tensions remain risks to the global cargo outlook, IATA says. (farhan.rafid@wsj.com)

1033 ET - High oil prices could boost energy producers' and oil-services companies' earnings, especially those companies with fairly low debt levels and controlled spending, eToro's Lale Akoner says in a note. Nonetheless, businesses in the airline industry, chemicals, and consumer businesses could be negatively affected by high energy costs and weaker demand, Akoner says. Brent crude last trades at $94.4 per barrel, having risen sharply in recent days following renewed U.S.-Iran tensions.