Oil Credits: Looking Good Near-Term

May 2008 | Market Strategy

BMI View: With front-month Brent crude still trading north of US$130 per barrel, the technical position of Latin America's oil credits remains well supported. In Ecuador, we see further upside potential for the US$ Global 15 and US$ Global 30 bonds now that question marks over the government's willingness to pay have diminished significantly. We are also optimistic in the near-term on Venezuela's benchmark US$ Global 27 bond, although the headline risks here do provide a legitimate case for continued caution.

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