The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0254 GMT - Some Singapore sectors are likely to enjoy healthy earnings growth despite the ongoing trade war, namely real-estate agencies, construction, capital markets and power businesses, Phillip Securities Research's Paul Chew says in a commentary. Such sectors can outperform in a muted economic environment with attractive dividend yields, the head of research says. Also, returning more capital has supported the performance of government-linked companies, including Singtel, Sembcorp Industries, DBS and Keppel, Chew says. The brokerage remains positive on banks, Chew adds. (ronnie.harui@wsj.com)
0225 GMT - Goldman Sachs cuts its oil-price forecasts on assumptions of higher OPEC+ supply, three Commodities Research team members say in a report. OPEC+ decided Saturday to increase June production by 411,000 bbl/day, in line with Goldman's base case. Goldman now expects a final OPEC+ production increase of 410,000 bbl/day in July versus 140,000 bbl/day projected previously. It forecasts Brent crude oil to average $60/bbl for the remainder of 2025 and $56/bbl for 2026 versus earlier expectations of $63/bbl and $58/bbl, respectively. Goldman projects WTI to average $56/bbl for the rest of 2025 and $52/bbl for 2026 versus previous forecasts of $59/bbl and $55/bbl, respectively. Front-month Brent crude oil futures fall 3.5% to $59.13/bbl; front-month WTI crude oil futures drop 3.8% to $56.05/bbl. (ronnie.harui@wsj.com)
2355 GMT - Oil futures slip in early Asian session after OPEC+ on Saturday agreed to increase output in June for a second consecutive month. The additional production of 411,000 barrels a day following a similar increase in May is perceived as a punishment for overproducing nations such as Iraq and Kazakhstan. Also, OPEC+ leader, Saudi Arabia, has warned that it could amplify a historic shift in policy and deliver further production hikes unless those nations fall in line, ANZ Research analysts say in a research report. Front-month WTI crude oil futures are down 3.9% at $56.01/bbl; front-month Brent crude oil futures are 3.6% lower at $59.07/bbl. (ronnie.harui@wsj.com)
2352 GMT - Auckland International Airport bull Macquarie is surprised by a recently announced government review of New Zealand airport regulation, and says it was "unexpected and without a purpose statement" and gives rise to questions over purpose and motivation. At best, the review is a light touch and supports the current regime; at worst, it will be the start of a protracted full regulatory review, Macquarie tells clients in a research note. It adds that the unscheduled review has "seriously shaken the investment confidence of larger international infrastructure investors in NZ Inc." Macquarie keeps an outperform rating on Auckland airport as it expects passenger volumes to continue recovering to pre-Covid levels and sees various revenue opportunities. (mike.cherney@wsj.com)
(END) Dow Jones Newswires
May 04, 2025 22:54 ET (02:54 GMT)
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