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When the world oil price was 48-50 US dollars per barrel in December, the stock price was 0.75 cents at that time, and now the world oil price has risen to 60 US dollars per barrel, the stock price stands at 0.645 cents instead.

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Stock: [DNEX]: DAGANG NEXCHANGE BERHAD

2021-02-05 22:13 | Report Abuse

Ya lah loss-making company also want to buy .

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Stock: [DNEX]: DAGANG NEXCHANGE BERHAD

2021-02-04 23:41 | Report Abuse

If oil prices really rise to USD 80/b how much can Dnex earn from ping?

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Stock: [DNEX]: DAGANG NEXCHANGE BERHAD

2021-02-04 23:38 | Report Abuse

Argus Live: Crude prices could surge to $80/bl in 2021

Published date: 27 January 2021

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Global crude prices could soar to $80/bl this year because of severe inventory shortages and rising demand, but US shale producers are unlikely to ramp up production, a panel of experts told the Argus Live Crude Summit today.

Crude supply is shrinking much faster than widely estimated, Marshall Adkins, a managing director who oversees energy investment banking at Raymond James, said. Global inventories have dropped by about 370mn bl since last May, which means Opec+ needs to produce at full capacity by the end of 2021 to keep up with demand.

Once demand starts to gain momentum, the resulting supply crunch will cause prices to jump by as much as 35pc this year to $80/bl from a little over $50/bl today.

The outlook "is exceptionally bullish," Adkins said. "Oil demand has been stronger and faster than expected. And inventories are falling very fast."

Ed Morse, managing director and global head of commodity research at Citi Group, concurred.

"The world overestimated the decline in demand," Morse said. "And the world is now dramatically underestimating the decline in inventories."

The bullish assessments are at odds with the IEA, which recently lowered its forecast for global oil demand in 2021 because of the Covid-19 pandemic.

"It will take more time for oil demand to recover fully as renewed lockdowns in a number of countries weigh on fuel sales," the organization said.

Adkins offered a simple explanation for the different forecasts.

The IEA "data is wrong," he said.

Analysts used to exclusively depend on IEA for supply and demand information, but such data only cover about 50pc of the market, Adkins said. Today, a number of firms track the industry and have been able to better get information on China and undersea oil, which means analysts can now see about 80-85pc of the market, he said.

"We got a much better view on global crude and product than just relying on the IEA," Adkins said.

But despite these optimistic price forecasts, US producers are not going to suddenly boost capital investments and pump a lot more oil and gas out of the ground, said Nick Allen, general manager, global crude and natural gas liquids for ConocoPhillips.

US producers took a big hit from the pandemic so they will devote their cash to repairing balance sheets before spending more on capital expenditures, he said.

Companies have emphasized "capital discipline, and I do not neccesarily think that is going to change," Allen said.

He also noted that producers have hedged a good deal of their 2021 production in the low $40/bl range, which means they will not get the benefit of a price surge this year.

By Thomas Lee