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Oil prices to fall through 2026 on supply glut – Goldman Sachs. (00:20) Sony increases costs of PS5 in Europe, Australia, and New Zealand amid tariff risks. (01:46) Tech stocks rebound on Trump tariff exemptions. (02:17)
This is an abridged transcript.
Goldman Sachs expects oil prices to decline through the end of 2025 and into 2026. Goldman expects Brent (CO1:COM) and WTI (CL1:COM) averaging $63 and $59 per barrel, respectively, this year and falling to $58 and $55 next year, due to rising recession risks and increased OPEC+ supply.
The bank projects oil demand will increase by just 300,000 barrels per day between the end of 2024 and the end of 2025, amid a weak growth outlook driven by a global trade war.
Due to the escalating trade tensions between the U.S. and China, the bank has lowered its global oil demand growth forecast for the fourth quarter of 2026 by 900,000 barrels per day since mid-March.
Goldman Sachs predicts that even with some future inventory builds already factored in, substantial surpluses of 800,000 barrels per day in 2025 and 1.4 million barrels per day in 2026 will keep oil prices under pressure.
West Texas Intermediate (CL1:COM) crude futures was up +0.8% to $61.97 at the time of writing, while Brent crude (CO1:COM), the international benchmark, was +0.7% at $65.19 a barrel and has declined over 13% YTD.
Sony Group (NYSE:SONY) has increased the price of its PlayStation 5 console by around 25% in Europe and the UK.
The PS5 will cost €500 (RM2,516) in Europe and £430 (RM2,494) in the UK from April 14.
The company announced the decision on its PlayStation blog, with Australia and New Zealand also affected, citing inflation and “a backdrop of a challenging economic environment.”
The price of the PS5 Pro remains the same.
Apple (NASDAQ:AAPL) and other American tech stocks are in the green in premarket trading after the Trump administration temporarily exempted smartphones, computers and other electronics, mostly imported from China, from reciprocal tariffs.
We told you Sunday here on Wall Street Brunch with Kim Khan that the exemptions apply to popular electronics items such as smartphones, laptops, computers, computer processors, memory chips, flat panel TV displays, solar cells, hard drives.
Apple (NASDAQ:AAPL) is up 5.4% in early trade, while other U.S. tech stocks are also higher with Nvidia (NASDAQ:NVDA) up nearly 2.5%, Dell Technologies (NYSE:DELL) +6.8%, Super Micro Computer (NASDAQ:SMCI) +5.7%, Hewlett Packard Enterprise (NYSE:HPE) +5%, HP (NYSE:HPQ) +6%.
KeyBanc analyst Brandon Nispel said that the tariff exemption is “probably the best case scenario” for Apple as it “takes a big risk off the table”, raising the recommendation on the stock to Sector Weight from Underweight.
However, Nispel added the stock is not fully “out of the woods” as “growth expectations remain high looking to FY26 and there is likely still consumer spending pullback occurring.”
Seeking Alpha’s Quant system rates Apple as Hold.
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Catalyst watch:
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Notable investor events include HP’s (HPQ) annual meeting.
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Ionis Pharmaceuticals’ (IONS) investor day.
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The tender offer for QXO (QXO) to acquire Beacon Roofing (BECN) expires. Beacon Roofing traded about 1.2% below the deal price at the time of publication.
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A United Launch Alliance Atlas 5 rocket is scheduled to launch a batch of 27 of Amazon’s (AMZN) Project Kuiper internet satellites, which will be the first production satellites for Amazon’s satellite internet megaconstellation.
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Meta Platforms (META) will face off against the U.S. Federal Trade Commission in a high-stakes antitrust trial that could lead to Instagram and WhatsApp being divested.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the green. Bitcoin is up 0.7% at $84,000. Gold is down 0.3% at $3,224.
In the world markets, the FTSE 100 is up 1.7% and the DAX is up 2.3%.
The biggest movers for the day premarket: BP (NYSE:BP) +4% – Shares rose after the company announced the discovery of oil at the U.S. Far South prospect in the Gulf of Mexico.
On today’s economic calendar:
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12:00 pm Richmond Federal Reserve Bank President Thomas Barkin will speak on “Driving Through the Economic Fog” before the Greater Greer Chamber of Commerce.
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7:40 pm Atlanta Federal Reserve Bank President Raphael Bostic speaks on monetary policy in a moderated conversation hosted by Emory University.
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