Challenges to persist for O&G companies

Dateline 2017-03-21, NST:

The worst is not over yet for oil and gas (O&G) companies as shale oil producers ramp up production and oil prices make a slow recovery.

Analysts and industry observers expect uncertainty to loom for the rest of the year as industry assumption remained at US$50 (RM221.50) a barrel.

Petroliam Nasional Bhd (Petronas) was more conservative, expecting an average of price of US$45 a barrel.

“We are maintaining our this year’s average Brent crude price at US$50 a barrel as we see more uncertainty with crude oil prices towards the downside bias,” said an analyst at MIDF Research.

Oil prices fell more than one per cent yesterday as investors made record cuts to bet on rising prices after strong drilling data from the United States fed concerns about the effectiveness of production cuts led by Organisation of the Petroleum Exporting Countries (Opec) to curb a supply glut, Reuters reported.


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