
Technical Focus – O&G
In the latest OPEC meeting, OPEC and its allies have collectively cast aside proposals for expanding output and decided to keep production in lid by sticking with current quotas for April 2021. The unexpected move has led to a tighter production has subsequently sent oil prices to their highest level since January 2020. We reckon that the move bodes well for oil & gas players, capitalising on the recent recovery with Brent oil prices surging towards the USD70/bbl. Back home, the higher CAPEX allocation at RM40-45bn by PETRONAS for 2021 (compared to RM33.4bn spent in 2020) is also welcoming for domestic oil & gas players.