O&G stocks may be heading for better 2019?


Ho ho ho.

Dateline 2018-12-04, NST:

Oil and gas stocks may be headed for a better year in 2019 as crude oil price claw back the current losses to trade over US$70 per barrel from January onwards.

The energy index, which represents the stocks, rebounded on Monday from its one-year low as crude oil price rose, but the index may continue to stay volatile until the end of the year, analysts said.

They said this gives investors the opportunity to hunt for bargains.

The looming weakness in current crude oil price stems from concerns over a global supply glut, exacerbated by waivers given by the United States to continue purchasing oil from Iran, one of the analysts said.

Brent crude oil price marked its eighth week of losses after declining marginally by 0.2 per cent last week to US$58.71 per barrel.

Brent crude has traded around US$66 per barrel on average for the last one month.

On Monday, the Brent rebounded 4.86 per cent to US$62.35 as at 2pm.

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