More pain ahead for O&G firms as oil price weakens
The steady decline in oil prices is threatening the outlook for players in Malaysia’s oil and gas (O&G) sector, said MBSB Research.
The research house warned that given the volatility of crude oil prices, the upstream exploration and production players are “highly vulnerable” until the year end.
“This volatility is also expected to impact the oil and gas services and equipment (OGSE) players, who face a risk of reduced capex for new projects and maintenance work,” it said in its O&G sector report today.
Brent crude has fallen more than 10% this year to about US$67 (RM282) currently. In August, oil prices tumbled nearly 15% year-on-year (y-o-y) and over 3% month-on-month (m-o-m).
The US Energy Information Administration expects the Brent price to decline in coming months, falling from US$68 per…
