Uptrend intact with a potential breakout after two-month sideways consolidation

• Brent crude oil prices have been sustaining sideways (US$53-US$57) despite negative news on higher crude stockpiles over the past month. Also, data from International Energy Agency (IEA) suggested that production cut by the OPEC and non-OPEC members since January 2017 should be able to ease the record stocks in the next six months by around 600,000 barrels per day.

• Meanwhile, on the local context, Petronas has been awarding some contracts to the local oil and gas players since the recovery of crude oil prices above the US$50 per barrel level; indicating that Petronas found solace in the current price level vs. the price in early last year (~US$28).

• Here are some of oil and gas stocks based on Bloomberg Industry Classification Standard with the outlook over the next 2-4 weeks period, accompanied by their short term supports and resistances.

Source: Hong Leong Investment Bank Research - 13 Feb 2017