RISING global oil prices amidst increasing Covid-19 vaccination rates and anticipated higher world economic growth rates in 2022 are brightening the outlook for Malaysia’s oil and gas sector, say research analysts. This is compared against global oil demand in 2021, which is now projected to average 96.7 million b/d. Steady economic developments are expected to support the partially delayed recovery in oil demand in various sectors,” said the cartel. However, H2’21 global oil demand has been adjusted slightly lower, partially delaying the oil demand recovery into H1’22 due to the increased risk of Covid-19 cases primarily fuelled by the Delta variant, clouding oil demand prospects going into the final quarter of the year, resulting in downward adjustments to Q4’21 estimates. Meanwhile, KAF Equities’ research unit also maintains its “overweight” call on the oil and gas sector, and favours companies with exposure to the downstream and tanker businesses.

Source: The Star September 17, 2021 21:56 UTC