KUALA LUMPUR, Sept 17 — Maybank Investment Bank Bhd maintained a “positive” call on the oil and gas (O&G) industry despite the weekend's attack on Saudi Arabia's oil facilities which saw the oil price spike more than 20 per cent overnight.
In a research note today, it said the incident disrupts six per cent of world oil output and 50 per cent of Saudi Arabia’s output, and equivalent to five years of global oil demand growth.
“This incident far outweighs the previous supply shock in the 70s and could escalate tensions in the already fragile Middle East.
“The disruption has returned volatility to the oil market with oil prices overshooting more than US$80/bbl temporarily,” it added.
Saudi Arabia’s Energy Minister Prince Abdulaziz Salman said 5.7 million barrels per day of crude oil and gas production had been affected overnight following the coordinated strikes via drones on its oil facilities in Khurais and Abqaiq.
Meanwhile, Public Invest Research has maintained its “overweight” rating on the O&G sector, saying that exacerbating the impact of the lower supply, the cold war between the US and Iran had also amplified the threat of military action.
“Therefore, we believe bullish sentiment in the market is likely to persist in the near-term, providing trading opportunities, especially to the pure oil and gas players like Hibiscus,” it said. — Bernama
