Today FBMKLCI closed -18.34 at 1852.03. We have seen Oil & Gas counter on the rally mode. Just to name a few hot counter such as SAPRNG, Hibiscs, Reach, UMWOG, Yinson.

Today let us examine what is going on with the crude oil price, because underlying asset which is crude oil price determine whether that is a need for exploration, support vessel for the business. Crude Oil Price as of Malaysia Time 9.36pm which showing last transacted price at 67.28 which showing crude oil currently steady stay above at the level 65 heading to 70 level. With the recovery of crude oil price, it will definitely be the booster to stimulate the trading interest in oil & gas counters.

What make it interesting for Malaysia crude oil counter showing a good recovery despite weak market sentiment. Personally, I think it is much on the speculation that Trumph will terminate the 2015 agreement which allowed Iran to export more crude oil. The decision need to make by 12 May 2018 whether to re-impose sanction on the OPEC nation. Iran could lose 500,000 Bpd if Trumph trashed deal.

On top of that, OPEC and non-OPEC led by Russia agree to extend the ouput cuts until the end of 2018 as they try to finish clearing a global glut of crude. OPEC and Russia together produce over 40 percent of global oil. Moscow’s first real cooperation with OPEC, put together with the help of President Vladimir Putin, has been crucial in roughly halving an excess of global oil stocks since January.

Speculation of resume sanction on IRAN will be the catalyst till announcement being make on 12 May 2018. Meanwhile, Malaysia General Election will having bigger impact on GLC related stock but it most likely will be a knee jerk reaction which all those movement is temporarily as the fundamental of the economy and the company does not affected due to result of the GE. So, let stay tune an waiting for the recovery of the crude oil price which I am looking around USD 70-80 by year end. If this would to happen, crude oil counter which I am monitoring will be Serbadk, Armada, Deleum, Carimin, SaPnrg, HIbiscs, Reach and Yinson.

Fundamental Oil & Gas Lover : Serbadk, Yinson, Hibiscs

Technical Oil & Gas Lover : SaPnrg, HengYuan,UMWOG.

Trade with wisdom ;

House of Happiness;

SMART MONEY ;

TREND FOLLOWER

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Disclaimer: Above information obtain at the best available source of information. Any inaccurate information, writer should not held any responsibility due to investment losses arise from above article. It does not solicit buy or sell call on the stock, it merely for educational sharing purpose. Kindly consult your investment broker pertaining any investment decision.