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.

1932 GMT - Oil futures fall to a nearly four-year low in a second day of heavy selling after China retaliated against U.S. tariffs with duties of its own, adding to concerns about loss of demand. "This pullback reflects market uncertainty and could weigh on global crude prices in the near term, particularly if trade tensions hinder economic growth in key oil-consuming regions," Joseph Dahrieh of Tickmill says in a note. "Volatility is likely to increase as markets digest the full implications of the tariffs." WTI falls 7.4% to $61.99 a barrel, its lowest settle since late April 2021. Brent falls 6.5% to $65.58 a barrel. (anthony.harrup@wsj.com)

1800 GMT - U.S. sanctions against Iranian and Venezuelan crude oil should compensate OPEC+'s decision to speed up the unwinding of output cuts in May, Societe Generale's head of commodities research Benjamin Hoff says in a note. "The more muscular implementation of U.S. sanction policy vis-à-vis Iran and also Venezuela is removing precisely the heavier, sourer grades from the market, that the world is currently short," he says. "This creates space for OPEC barrels to return." The OPEC+ decision added fuel to this week's tariff-induced selloff in oil. Hoff expects OPEC+ to manage further increases tactically. "Depending on price impact it is entirely possible that we will see a delay of the return of further barrels in June." (anthony.harrup@wsj.com)

1731 GMT - The number of rigs drilling for oil in the U.S. rose by 5 this week to 489, and was down by 19 from a year ago, oil services firm Baker Hughes reports. Rigs directed at natural gas fell by 7 to 96, or 14 fewer than a year ago. Higher oil prices over time tend to lead to greater drilling, and while the U.S. has maintained record oil and gas production with lower rig counts, the current price drop is likely to limit growth. Crude futures sank to four-year lows in a rout prompted by U.S. global trade tariffs and China's retaliation. U.S. benchmark WTI is off 7.8% at $61.72 a barrel after hitting $60.45 earlier in the session. (anthony.harrup@wsj.com)

1451 GMT - Canadian energy producers are among the worst performers in the session marked by global stock selloffs from fears around the ongoing tariff war. China today said it will impose an additional 34% tax on all U.S. goods from April 10. Baytex Energy, Vermilion Energy, MEG Energy and Cenovus are among the worst decliners in their sector and on the TSX, down between 12% and 14%. According to a report by the Canadian Association of Petroleum Producers, combined, crude oil, NGLs, and natural gas exports accounted for C$152 billion in 2023, roughly 20% of total Canadian exports. Roughly 80% of Canada's oil supply went to the US that year. (adriano.marchese@wsj.com)

1318 GMT - Fundamental oil market signals are no help in predicting a price bottom for oil in the "highly unusual market environment that has been self-inflicted via the Trump tariffs," Ritterbusch says as futures sink for a second day after China responded with a 34% duty on U.S. goods. "Technically oversold indicators also become virtually irrelevant," the firm says. A weaker Chinese economy due to the tariffs is "a major negative" for global demand growth and will likely lead to cuts in expectations. WTI is off 7.5% at $61.95 a barrel, and Brent is down 6.7% at $65.41 a barrel. (anthony.harrup@wsj.com)

1212 GMT - Credit issued by European companies in defensive sectors--such as utilities and telecommunications--are likely to perform better than other euro corporate bonds as markets brace for weaker U.S. growth than previously expected, Bank of America analysts say in a note. This week's tariffs are likely to hit U.S. and global growth, causing weak performance in cyclical sector credit, they say. "We think there is more outperformance ahead for sectors like utilities (and telecoms)...sectors that have classically outperformed when the U.S. macro cycle has slowed." (miriam.mukuru@wsj.com)

1158 GMT - With its shares off nearly 15% during Thursday's market rout, Matador Resources says its board will consider implementing a stock buyback when it meets later this month. Matador has previously said it wasn't planning any share repurchases, but Thursday's selloff left the energy company's shares near a 52-week low. Matador, which in February raised its quarterly dividend by 25% to 31.25 cents, says the payout remains well within its means at current commodity prices. Matador down 7.5% premarket. (colin.kellaher@wsj.com)

1109 GMT - It remains to be seen whether BP's next chairman will lead to a wider shake up at the British oil major, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. A wider shake-up could include management changes or changes to BP's strategy, they write. Investors won't be surprised by Helge Lund's departure given he was viewed as the chief architect of its now jettisoned low-carbon strategy, they write. Shares trade down 5.3% at 2,526 pence. (adam.whittaker@wsj.com)

0921 GMT - BP will hope that Chairman Helge Lund's departure will satisfy frustrated shareholders, AJ Bell investment director Russ Mould writes. BP will particularly want Elliott to be satisfied given the activist investor hasn't been overly impressed with its reset strategy, he says. The British energy company needs a chair with significant credibility across the industry and the market, he writes. In the meantime, Chief Executive Murray Auchincloss remains under significant pressure to improve BP's operational and financial performance, Mould says. Shares fall 2.6% at 389.90 pence. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

April 05, 2025 04:20 ET (08:20 GMT)

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