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

0955 ET - U.S. natural gas futures are holding around the $3 level as the market awaits weekly inventory numbers that are expected to show a below-normal storage injection. Analysts in a WSJ survey expect a 53 Bcf build for last week that would lower the inventory surplus over the five-year average to 95 Bcf from 118 Bcf the previous week. The EIA report is due at 10:30 a.m. ET. "Near-term volatility risks remain elevated into October contract final settlement on Monday, while storage figures are projected to subsequently loosen in late September and early October," Eli Rubin of EBW Analytics says in a note. Nymex natural gas is off 0.6% at $3.006/mmBtu. (anthony.harrup@wsj.com)

0953 ET - Oil futures extend their recovery into a second session with little progress seen toward direct talks between the U.S. and Iran. Prices have been contained by continuing flows through the Strait of Hormuz and the restart of Saudi Arabia's East-West pipeline, but the market remains cautious as long as the conflict drags on. "Crude oil remains in strong demand, as there is still no evidence of a breakthrough toward a diplomatic solution that would bring the parties back to the negotiating table," Peter Cardillo of Spartan Capital says in a note. WTI is up 1.9% at $93.92 a barrel and Brent is 2.2% higher at $105.36 a barrel. (anthony.harrup@wsj.com)

0527 ET - Oil prices extend gains, with front-month Brent crude futures rising back above $105 a barrel. According to an AFP report citing Iran's news agency Fars, an adviser to Iran's Supreme Leader Mojtaba Khamenei warns that Tehran might expand the Middle East war to the Indian Ocean if the U.S. or Israel attacks again. In midmorning European trading, the global oil benchmark gains 2.3% to $105.47 a barrel, while the U.S. oil gauge WTI is up 1.8% to $93.80 a barrel. (giulia.petroni@wsj.com)

0421 ET - European natural-gas prices rise in early trading as market focus remains on storage levels ahead of the winter heating season. The benchmark Dutch TTF contract gains 3% to 74 euros a megawatt-hour with diplomatic talks between the U.S. and Iran showing little sign of meaningful progress, adding to uncertainty over the broader energy outlook. According to industry group Gas Infrastructure Europe, inventories across the European Union are currently 70% full, well below the seasonal average of 86%. "Higher LNG flows to northwest Europe have offered some relief, but lower Norwegian pipeline flows amid heavy maintenance continue to limit the buffer," analysts at ANZ say. (giulia.petroni@wsj.com)

0349 ET - Oil prices tick higher in early European trading on little sign of progress in U.S.-Iran talks, with Brent crude up 0.2% to $98.28 a barrel and WTI futures rising 0.1% to $92.26 a barrel. "Continued Hormuz flows and a Saudi pipeline restart could ease physical supply pressures, but persistent tanker attacks and limited diplomatic progress should keep volatility and the geopolitical risk premium elevated," says Soojin Kim, analyst at MUFG. Meanwhile, supply of refined products remains tight, particularly diesel, with most analysts saying a potential full or partial U.S. diesel export ban would provide only limited short-term relief and could eventually hurt the market. (giulia.petroni@wsj.com)

0325 ET - Yields on U.K. government bonds, or gilts, rise due to rising oil prices as energy supply disruptions persist. Brent crude is up 0.6% to $103.71 a barrel. High oil prices have caused markets to raise their expectations of the Bank of England increasing interest rates in the coming months. Markets price in a 75% chance of a BOE rate increase in November, and fully price in a total of three rate increases by March, LSEG data show. Ten-year gilt yields rise 3 basis points to last trade at 5.350%, Tradeweb data show.