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

0856 GMT - The market underappreciates the cash flow potential of renewable power generator Drax, J.P. Morgan analysts Pavan Mahbubani and Mukund Verma write. Drax hiked its outlook for 2026 thanks to its 561 million pound acquisition of Bluefield Solar Income Fund which completed on July 31. Drax anticipates its new solar and wind assets to cut costs and improve pricing. The move could offer improved earnings from a more diversified energy portfolio, the analysts say. "We increase our EPS by 3% off the back of this, which we see as being driven by strong operational performance of power generation against a high, volatile power price backdrop," the pair write. JPM has an overweight rating on the stock and 960 pence price target. Shares are 0.85% higher at 826.50 pence. (joseph.wilkins@wsj.com)

0842 GMT - Middle East countries investing in oil pipelines to diversify export routes remains useful but not risk-free, J.P. Morgan analysts write after Saudi Arabia's East-West pipeline was hit. The attack doesn't invalidate the regional strategy of building alternative export routes but does highlight how physical diversification alone can't eliminate geopolitical risk, they say. "Protecting hundreds of kilometers of energy infrastructure remains challenging, suggesting that durable regional de-escalation and security arrangements ultimately provide a more effective solution than additional infrastructure alone," they say. (adam.whittaker@wsj.com)

0753 GMT - European gas prices rise with the Dutch TTF contract up 0.45% at 78.37 euros a megawatt-hour. This is despite oil prices falling on the prospect of lost Saudi Arabian supplies returning to the global market faster than expected. Lower-than-average storage levels, especially in Germany, continue to support gas prices heading into the winter. Germany has now pushed its state-owned gas trader to buy more gas in a bid to grow inventories.(adam.whittaker@wsj.com)

0721 GMT - The prospect of lost Saudi Arabian volumes returning to the global market pushes oil prices lower in morning trade. Prices decline for a second consecutive day, with Brent crude down 1.6% at $104.09 a barrel while WTI slips 1.2% to $101.15 a barrel. Saudi Arabia is seeking to restore around half of the East-West pipeline's capacity within days, MUFG's Soojin Kim writes, citing media reports. A full return is then targeted within six weeks, she adds. "A faster restoration of Saudi pipeline capacity could ease physical market pressures, although constrained Hormuz flows and continued Russian supply disruption will keep crude prices elevated," she says. (adam.whittaker@wsj.com)

0716 GMT - European stock indexes broadly rose at the open, as lower oil prices boosted sentiment. Technology and energy-intensive stocks help drive the Stoxx 600 up 0.55%. London's FTSE 100 is 0.4% higher as industrials gain, with Rolls-Royce up 1.1%. Autos lead Germany's DAX up 0.6%, with BMW climbing 1.8% while Volkswagen adds 1.5%. Autos also rise in Paris, where Renault climbs 2.1%, leading the CAC 40--up 0.5%. The Italian FTSE MIB rises 0.6%, while the Spanish IBEX 35 edges 0.75% higher. In the Netherlands, the Dutch AEX gains 0.6% as tech stocks rally across both hardware and software. ASML, Europe's most valuable company, adds 1.9%, while software group Relx gains 1.3%. (josephmichael.stonor@wsj.com)

0705 GMT - Bitcoin rises slightly as U.S. stock futures point to a higher open, recovering from falls after Wednesday's interest-rate rise by the Federal Reserve. The Fed lifted rates by 25 basis points, which was more than 90% priced by markets, according to LSEG. However, the unanimous vote in favor of the move along with officials' projections for at least one more rate increase briefly hit market sentiment. Tech stocks helped to limit the impact of the decision though as the Philly Semiconductor Index advanced, Deutsche Bank analysts say in a note. Oil prices are also lower as headlines suggest an improved outlook for oil flows out of the Middle East, they say. Bitcoin rises 0.5% to $76,474, LSEG data show.