The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0806 GMT - European oil stocks fall at the market open as trade tariffs and their impact on the global economy add to concerns about weakening demand. Oil prices plunge to a four-year low, with Brent crude down 2.3% at $61.35 a barrel and WTI down 2.4% to $58.13 a barrel--their lowest levels since February 2021. British oil majors BP and Shell fall 3.4% and 2.3%, respectively. Italy's Eni drops 3.7%, while Spain's Repsol and Portugal's Galp Energia lose more than 3.5%. Austria's OMW is 2.8% lower and France's TotalEnergies is down 2.3%. (maitane.sardon@wsj.com)

0332 GMT - Dialog Group's recent share price weakness appears to be a buying opportunity, Maybank IB analyst Jeremie Yap says in a note. Despite a dip in oil prices, he anticipates stronger demand for tank storage due to OPEC+'s decision to increase production starting April. Dialog's tank terminals, already over 90% utilized as of fiscal 2Q, could benefit from rising storage rates and longer contracts, boosting its cash flow, he reckons. However, Yap notes that new, sizeable tank terminal contracts are essential for re-rating the stock and expanding recurring income. Dialog's upstream revenue may be impacted by lower oil prices, he adds. Maybank maintains a buy rating on Dialog and keeps the target price at MYR2.34. Shares are 3.3% lower at MYR1.19. (yingxian.wong@wsj.com)

0136 GMT - Malaysia's oil-and-gas sector may face near-to-mid-term pressures from rising OPEC+ output and potential U.S. trade tariff disruptions, MIDF Research says in a note. Brent prices are expected to remain soft, averaging $67/bbl in April, it says. Tariffs could raise project costs involving the U.S. by 2%-5%, particularly for offshore activities, putting pressure on upstream margins amid weak oil prices, MIDF says. While Malaysia's direct impact is limited to higher raw material and feedstock costs, the ongoing uncertainty around the scope of tariffs will weigh on sentiment, it adds. MIDF urges industry players to diversify supply chains, boost efficiency, engage policymakers and strengthen partnerships to mitigate risks. It downgrades the sector's rating to neutral from positive and pegs Petronas Gas as its top pick. (yingxian.wong@wsj.com)

0012 GMT - Oil futures decline in the early Asian session on worries over U.S. tariffs impact on oil demand. A huge tariff takes effect today. President Trump's "tariffs have raised concerns about escalating trade tensions, particularly with China," says Hassan Fawaz, chairman and founder of GivTrade, in an email. Trump has said he will slap an extra 50% tariff on China if Beijing didn't drop plans to retaliate against extra levies he announced last week. This will mean a total of 104% tariff on Chinese imports. Front-month WTI crude oil futures slip 3.1% to $57.76/bbl; front-month Brent crude oil futures drop 2.6% to $61.18/bbl. (ronnie.harui@wsj.com)

1920 GMT - Crude oil futures give up early gains and fall for a fourth straight session as continuing trade wars add to concerns about loss of demand. "Unfortunately for crude oil, tariff demand destruction is only half of the problem," Mizuho's Robert Yawger says in a note, pointing the OPEC+ decision to add more than 400,000 barrels a day to output next month on top of this month's 138,000 barrels a day increase. OPEC and the IEA are likely to cut their demand estimates in next week's monthly reports, he adds. "It will be interesting to see how OPEC justifies increasing May production by a total of 538,000 barrels a day." WTI settles down 1.8% at $59.58 a barrel, and Brent falls 2.2% to $62.82 a barrel. (anthony.harrup@wsj.com)

1746 GMT - Oil futures give up early gains and are lower for a fourth straight session as the U.S. trade dispute with China shows no sign of easing, with the U.S. intending to impose an additional 50% tariff on China at midnight. "China has said they will continue the fight against tariffs and some traders fear they could slow or halt U.S. crude purchases altogether," Dennis Kissler of BOK Financial says in a note. "Add in the raising of production by OPEC+ and crude still has some major headwinds." WTI is off 1.6% at $59.74 and Brent is down 1.8% at $63.02 a barrel. (anthony.harrup@wsj.com)

1709 GMT - Caterpillar likely has more earnings downside because of macro headwinds that isn't priced into the stock, according to UBS in a note. The analysts say recent underperformance reflects a modestly more challenged demand and pricing environment than was reflected in company expectations. But now, UBS thinks tariffs and continued uncertainty will weigh on the more economically sensitive parts of Caterpillar's business, including some construction verticals, oil and gas, and mining. UBS cuts Caterpillar to a sell rating from neutral and lowers the target price to $243 from $385. Caterpillar is down 0.8% to $277.83, and off 23% year-to-date. (sabela.ojea@wsj.com; @sabelaojeaguix)

1528 GMT - European corporate bonds within the utilities sector will likely perform better than other sectors during the current period of heightened uncertainty surrounding trade tariffs, analysts at J.P. Morgan Securities say in a note. Investors are likely to invest in low-risk sectors such as utilities. The sector provides essential services that have inelastic demand, meaning earnings volatility is low, the analysts says. "Strong capital flows have helped utilities outperform in most historic periods of market stress (e.g. 2020, 2008, 2009)." (miriam.mukuru@wsj.com)

1311 GMT - Treasury yields keep rising and the dollar falls as markets seem to take a break from the tariffs panic of the past few days. Stock futures are rising while oil prices recover a bit from very low levels. Trump leaves the door open for negotiations with various countries, partially offsetting rising trade tensions with China. The WSJ Dollar Index is down 0.5% as the greenback weakens 0.5% against the euro and 0.7% versus the yen. The 10-year yield is at 4.230%, the highest so far this month. The two-year is at 3.793%. (paulo.trevisani@wsj.com; @ptrevisani)

1256 GMT - Oil futures are higher after three days of losses in a cautious rebound as the combination of tariff-driven demand loss and higher OPEC+ supply keep downside risk in the market. "Both the supply and demand side of the global oil equation has seen a major shift in less than a week in the direction of much looser petroleum balances going forward than had been anticipated at the beginning of this month," Ritterbusch says in a note. "We view it as premature to suggest that a price bottom has been seen when looking across the rest of this month." WTI is up 0.9% at $61.24 a barrel, and Brent is up 0.8% at $64.71 a barrel. (anthony.harrup@wsj.com)

(END) Dow Jones Newswires

April 09, 2025 04:20 ET (08:20 GMT)

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