Sector Update
Regional Oil & Gas
Middle East Tensions Boost Oil
Prices
The
US, UK and France launched a military strike on Syria’s chemical weapons
facilities on 14 Apr. The attacks were denounced by both Iran and Russia. We
believe that the situation is contained at the moment, as Russia seeks a
diplomatic path by calling for an emergency meeting of the UN Secretary
Council. As we enter the peak oil demand season and with the backdrop of
intensified Middle East tensions, we see little reason for crude oil prices to
soften much, from hereon. We boost our crude oil price forecast to
USD73.30/bbl, USD79/bbl and US81/bbl for 2018-2020 respectively. Remain
OVERWEIGHT on the sector. Our Top Picks are PTT, PTTEP, PTTGC, SPRC, Petronas
Chemicals and Muhibbah.
Analyst:
Kannika Siamwalla, CFA +66 2088 9744
Link to
report: Middle East Tensions Boost Oil Prices
Morning Cuppa Full Report: Indonesia Morning Cuppa 160418
