1512 GMT - Corporate bonds within the U.S. energy sector look vulnerable if oil prices fall further, UBS credit strategists say in a note. WTI currently trades at $58.76 a barrel, well below levels above $74 at the start of April due to President Trump's tariff announcements and OPEC+'s recent decision to increase output. U.S. energy bonds within both investment-grade and high yield "are underperforming and we remain cautious," the strategists say, adding that the combination of OPEC's production hikes and tariffs could lower WTI prices to near $50. Spreads on these bonds "look underpriced" for the risk of further oil price declines, they say. (jessica.fleetham@wsj.com)
(END) Dow Jones Newswires
May 07, 2025 11:13 ET (15:13 GMT)
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