UBS has reduced its oil price forecasts this year, joining several other Wall Street banks that see a softening of raw demand this year due to President Donald Trump's global tariff regime. UBS has reduced its global reference prospects from $ 12 to $ 68 a barrel and expects American crude oil to be negotiated at $ 64, economic growth should slow down. But there is a risk that the trade war can degenerate more, causing a deeper recession in the United States and a hard landing in China, the customers of raw materials, Giovanni Stauunovo told customers. In this scenario, Brent could fall between $ 40 and $ 60 per barrel, wrote Staunovo. “Given these risks, we are currently in the face of new investment opportunities,” said Staunovo. UBS previously saw an opportunity to sell the risk of falling crude oil, but now recommends that investors keep these stations until they ripen. The best choices of stock with the prices of pressure under pressure, UBS considers independent exploration and production companies and petroleum service companies and the most exposed. Compared to other industries, however, the bank believes that the impact of higher rates in the American energy sector is lower than the average. “Although we did not expect the industry to compensate for all the impact, we note the continuous success of the industry to increase efficiency and productivity that could partially compensate for the impact,” said James Dobson, a Stratège en shares at UBS, customers in a note on Monday. UBS considers large integrated oil and gas companies as the best defense against the drop in crude prices because their business is diversified through refining and chemicals, reducing the sensitivity of their income to the market for volatile basic products. The best integrated choice of the bank is Exxon due to the solid balance sheet of the company and the diversified operations which help is to isolate it from the prices of raw materials, said Dobson. The Exxon cost reduction program has also improved its financial results, he said. “Depending on our oil prices prospects, Exxon seems to be positioned to cover its capital expenses, dividends and share buybacks with cash flows in 2025 and 2026,” said Dobson. Exxon also offers opportunities in future industries such as carbon capture, clean electricity and hydrogen, he said. Exxon Mobil's shares are down approximately 3% over a year, but it is less a drop than the larger market. The S&P 500 index has dropped 7.8% so far in 2025. COP Ytd Mountain Conocophillips Stock Performance Conocophillips, which recorded a drop of almost 13% for one year to date, is the first choice of UBS among the names of exploration and production. UBS prefers actions that have more exposure to natural gas because the goods should play a key role in the electrification of the economy. Conoco has opportunities in liquefied natural gas that increases its perspectives, said Dobson. Conoco low cost operations make it one of the best generators in industry cash flow, the analyst said. “We consider Conoco as a basic energy outfit and think that management is above average,” said Dobson. “We also believe that the company is extremely well positioned.” Get your Pro Live ticket join us on the New York Stock Exchange! Uncertain markets? Win an advantage with CNBC Pro Live, an exclusive and inaugural event on the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert information is essential. As a CNBC Pro Auto, we invite you to join us for our first exclusive event and in person CNBC Pro Live in the emblematic NYSE on Thursday, June 12. Join the professional interactive clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You will also have the opportunity to network with CNBC experts, talents and other professional subscribers for an hour of exciting cocktail on the legendary soil. Tickets are limited!
UBS Slashes Oil forecasts, says that these stocks are best placed
