GE15 NEWS   Tuan Ibrahim is opposition leader in Pahang State Assembly | 
BUSINESS

Maybank IB positive on O&G sector, maintains US$100 per barrel estimate for 2022-23

07/10/2022 02:15 PM

KUALA LUMPUR, Oct 7 (Bernama) -- Maybank Investment Bank has maintained its positive stance on Malaysia’s oil and gas (O&G) sector following the Organisation of Petroleum Exporting Countries Plus (OPEC+) slashing oil output by two million barrels per day (bpd) in November 2022. 

In a research note today, it said the move went against the United States' plan to see a softer oil price. 

“With this move, the oil price will remain elevated. Our US$100 per barrel oil price (Brent) estimate for 2022-2023 is unchanged,” said Maybank IB. 

It said OPEC+ has agreed to cut its production quota by two million bpd in November 2022, as it seeks to spur oil price up, which has recently fallen to US$80 per barrel. 

Putting things into perspective, this is by far the biggest cut by the OPEC+ group since the height of the pandemic in 2020, said the research firm.

“This move (production cut), in our view makes much sense to the oil-producing states, on economic, operating and political statement fronts, in light of the tightness in spare capacity and the reality in its collective inability to meet production quota in the past,” it said

Looking back, OPEC+ fell about 3.6 million bpd short of its output target in August 2022.

Maybank IB’s “buys” include Yinson and Dialog. 

-- BERNAMA


BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on the Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on the FM93.9 (Klang Valley), FM107.5 (Johor), FM107.9 (Kota Kinabalu) and RM100.9 (Kuching) frequencies.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2022 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy