Subdued but improving oil and gas industry in 2016

Dateline 2016-12-18, Malay Mail:

The oil and gas industry endured another challenging year in 2016 as the global supply glut continued to haunt the market, pushing global crude oil prices to their lows.

In fact, benchmark Brent dived to as low as US$27.88 per barrel in January from a high of US$114.81 recorded in June 2014.

Save for the intervention by the Organisation of the Petroleum Exporting Countries (Opec) in December, which injected some positive vibes to prices, the industry was mostly quiet with little news making the headlines throughout the year.

The decline in oil prices has also forced the government to recalibrate the 2016 Budget in January as the initial budget tabled in Parliament in October 2016 forecast oil price to average US$48 per barrel this year.

Bank Islam Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid described the sector this year as weak in various fronts.

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