Dateline 2017-02-09, Borneo Post:
Analysts believe that the current outlook for the oil and gas (O&G) sector in Malaysia is turning positive as downside risks to oil prices and share prices are declining, reflecting a more attractive risk-reward profile for investors.
Affin Hwang Investment Bank Bhd’s research arm (AffinHwang Capital) said the current outlook suggested downside risks to oil prices were looking more benign.
“Due to higher oil prices, we believe Malaysia’s sector contract flow could start to improve this as oil majors revisit capital expenditure (capex) plans,” it added in a report yesterday.
The research team pointed out that the decisions made by the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC to cut down production has greatly benefited the recent performance of oil prices.