Kenanga Research Maintains ‘Neutral’ Call On O&G Sector

KUALA LUMPUR, March 15 (Bernama) — Kenanga Research has maintained a ‘neutral’ call on the oil and gas (O&G) sector on better contract flows from Petroliam Nasional Bhd and other oil majors.

In a research note today, it said, global oil prices had weakened nine per cent to US$51.40 (US$1 = RM4.45) per barrel within a week after a few months of stabilisation, largely due to reignited concerns on building oil stocks and revival of rigs in US and moderation of oil demand growth.

“This is not surprising to us as US shale producers were the biggest beneficiaries, shown in a 10 per cent growth since the production cut announced by the Organisation of the Petroleum Exporting Countries (OPEC) last December…..

(Bernama)

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