Analysts Increase Oil Price Forecast by Andreas Exarheas|Rigzone Staff|Wednesday, June 03, 2020
Analysts Increase Oil Price Forecast Analysts at Fitch Solutions Country Risk and Industry Research have increased their forecast for the price of Brent crude oil in 2020. Analysts at Fitch Solutions Country Risk and Industry Research (Fitch Solutions) have increased their forecast for the price of Brent crude oil in 2020, a new report by the company has revealed.
The analysts now expect Brent to average $40 per barrel this year, compared to their previous 2020 forecast of $33 per barrel. Fitch Solutions analysts also see Brent rising further to $49 per barrel in 2021, according to the company’s latest report. This marks a $7 per barrel increased compared to their previous projection of $42 per barrel for next year.
Looking further ahead, Fitch Solutions analysts now anticipate that Brent will increase to $55 per barrel in 2022, $60 per barrel in 2023 and $63 per barrel in 2024.
The Bloomberg Consensus for Brent, which was also highlighted in the report and which Fitch Solutions is a contributor to, sees Brent averaging $39 per barrel this year, $50 per barrel in 2021, $55 per barrel in 2022, $60 per barrel in 2023 and $64 per barrel in 2024.
“Compliance with the OPEC+ production cut deal has outpaced our expectations, while demand appears to have passed its nadir,” the Fitch Solutions analysts stated in the report, which was sent to Rigzone on June 1.
“Continued production restraint by OPEC+, steep declines in non-OPEC supply and rising oil demand will support further price strength over the second half of 2020 and 2021,” the analysts added.
“However, bloated crude and product inventories, the unwinding of the cut deal and the long road to economic recovery will somewhat cap the upside,” the analysts continued.
Last month, the U.S. Energy Information Administration raised its average Brent spot price forecast to $34.13 in 2020 and $47.81 in 2021. The EIA previously expected Brent spot prices to average $33.04 in 2020 and $45.62 in 2021.
good for reduction in production, ribut taufan dah mau melanda :)
“With the significant pullback in U.S. shale and onshore production, hurricanes will have a more substantial impact on oil and natural gas prices because we are going to feel Gulf of Mexico production shut-ins more acutely,” said Phil Flynn, senior market analyst at The Price Futures Group, in a note.
The National Hurricane Center is tracking Tropical Storm Cristobal, which may move further into the Gulf of Mexico later this week, potentially threatening energy production in the region.
this is one of the oil stocks that could surprise us. On 6 Mar 2020, dayang closed at RM2.16 and WTI oil price was USD45+ per barrel. Now, WTI oil is USD39+ per barrel and dayang is still about RM1.3+.
Recent research reports from reputable banks, etc - pujian yang tak terhingga diberikan kepada Dayang.... Semoga mendapat durian runtuh tak lama lagi. :)
Price Target Research Article/News (past 6 months) 24/02/2020 PUBLIC BANK Dayang Enterprise Holdings - Strong Ending 24/02/2020 MIDF Dayang Enterprise Holdings Berhad - Improved Offshore Margin Boosted Earnings 24/02/2020 KENANGA Dayang Enterprise Holdings - Posts Record Profit in FY19 24/02/2020 HLG Dayang Enterprise Holdings - A Record Showing
Today, WTI price is around USD39+ but dayang share price was low at RM1.32 like on March 9, 2020 when the WTI price was RM34.36. As such, dayang should move up when spotted by people, etc soon.
I believe that oil stocks will become the hot rotational play when the WTI oil price per barrel hit USD40 which is pretty near now. The price could easily move up when mco is lifted country by country and also huriccane is coming soon, oil production facilities especially in USA will be affected, production is forecast to drop and also OPEC and Russia agreement to reduce oil production would also help to boost oil price.
Sediakan payung sebelum hujan.
After covid pandemic ends, glove stocks will cool down, healthcare stocks will cool down.............. economy accelerates, planes take off, factories increase production, etc........ demand for oil will be further boosted.
Oil price will rebound pretty soon, oil stocks are going to fly soon
Strongly agreed especially the rising oil price close to USD40 per barrel before the MCO lockdown. Also, the Founder of Dayang is very capable and many years of experiences in this industry. Period.
Datuk Ling Suk Kiong, aged 71, male, is the founder of Dayang Group of Companies. He established Dayang Enterprise Sdn Bhd in 1980. He was appointed Executive Deputy Chairman of Dayang Enterprise Holdings Bhd on 29 February 2008. He has been instrumental in the growth and development of the Group. He brings with him more than thirty (30) years of experience in the Oil and Gas Industry and is mainly responsible for the overall strategic business direction of the Group.
Datuk Ling was appointed as a Non-Independent Non- Executive Director of Perdana Petroleum Berhad on 12 December 2012 and on 24 August 2015, he assumed the position of Executive Chairman. He is also a director in several private limited companies in Malaysia.
He was awarded the Sarawak State Entrepreneur Of The Year Award 2009 in Kuching representing the Sarawak Chinese Chamber of Commerce and Industry category.
Datuk Ling was conferred the "Outstanding Entrepreneurship Award" for Outstanding and Exemplary Achievements in Entrepreneurship on 13 April 2014 at the Asia Pacific Entrepreneurship Awards 2014 held in Brunei Darusalam.
On 13th September 2014, Datuk Ling was conferred the award of Panglima Gemilang Bintang Kenyalang (P.G.B.K) which carries the title "DATUK" by Tuan Yang Terutama Yang Di-Pertua Negeri Sarawak Tun Pehin Sri Haji Abdul Taib Mahmud in conjunction with His Excellenc's 78th Birthday.
Dayang's Profit Growth Prospect - Koon Yew Yin Author: Koon Yew Yin | Publish date: Tue, 10 Mar 2020, 6:29 PM
I have extracted and summarised the company’s announcements as follows:
Dayang’s ability to win two I-HUC contracts in December 2019 from Petronas Carigali reaffirmed the trust, confidence and support of our esteemed clients, especially Petronas. In early Feb 2020, we added on another contract by CARIGALI-PTTEPI Operating Company Sdn. Bhd. for the provision of modification works for Block B-17 & C-19 and B-17-01 for a period of three years with two years extension option.
Both these replenishments of new contracts have increased our order book to an estimated RM4.5 billion to last us until 2023. This will positively enhance our prospects and earnings visibility over the next three years. We remain upbeat on the company’s future prospects as Dayang will leverage on its strong execution track record to ride on the ramp-up in business activities.
After the completion of the group-wide debt restructuring, Dayang is now ready to embark on long-term growth plans to further maximise shareholder value given our more efficient capital structure. We are confident that our strong cash flow generation and healthier balance sheet will propel us to greater heights going forward and we should therefore be able to reward our faithful shareholders who have remained
steadfast with us throughout this journey.
The Board remains committed in ensuring the Group continues to excel and to deliver yet another distinctive set of good result in the company’s business.
Datuk Hasmi Bin Hasnan Executive Chairman Ali Bin Adai Independent Non-Executive Director Datuk Ling Suk Kiong Executive Deputy Chairman Tengku Dato' Yusof bin Tengku Ahmad Shahruddin Managing Director Joe Ling Siew Loung @ Lin Shou Long Deputy Managing Director Jeanita Anak Gamang Executive Director Wong Ping Eng Non-Independent Non-Executive Director Gordon Kab @ Gudan Bin Kab Independent Non-Executive Director Koh Ek Chong Independent Non-Executive Director Azlan Shah Bin Jaffril Independent Non-Executive Director
Strong rebound is approaching, hold your breath :)
KUALA LUMPUR (June 4): As Brent crude oil touched US$40 a barrel this week for the first time since March, Maybank Kim Eng is projecting the price to hover around this level for the rest of the year.
This is because there is still a lot of supply, albeit demand having started to improve from May onwards, its oil and gas analyst Liaw Thong Jung said.
At the time of writing, Brent crude oil futures were trading at US$39.41, a significant recovery after having crashed to an 18-year low in April.
Speaking at Maybank Kim Eng's Invest Asean 2020 virtual conference today, Liaw also painted a scenario whereby major oil producers including Saudi Arabia and Russia, have taken the incentive to keep oil prices at US$40 and below, to prevent US shale oil from staging a big comeback.
“That is a psychological point for the oil price market to balance up over the next few years,” he said.
Going forward, Liaw holds the view that oil prices would only go above $US40 in 2021, as oil demand normalises when disruption eases and supply continues to fall, as OPEC+ policy improves.
In terms of preferred O&G counters, Liaw said investors should focus on oil companies with strong balance sheets and minimal orderbook disruption, as well as those with deep-pockets, which will enable them to capitalise on merger and acquisitions opportunities.
Dayang Enterprise Holdings may soon moves beyond the resistance level RM1.37. With RSI above 50% threshold level, coupled with rising volume, we foresee that there could be a technical breakout soon. If this happens, the next short-term target prices will be RM1.50 followed by RM1.60. In this case, the downside support is marked at RM1.26, whereby traders may exit on a breach to avoid the risk of a further correction
another positive factor regarding dayang, dayang shares from tabung haji cluster were not sold off by urusharta sdn bhd.... unlike mct, bhic, etc etc which were dumped by urusharta,
This could be due to the extreme undervaluation of dayang shares that caused urusharta's unwillingness to dump or wanted to hold for the long run. :)
Stock [DAYANG]: DAYANG ENTERPRISE HOLDINGS BHD Announcement Date 17-Feb-2020 Substantial Shareholder's Particular: Name URUSHARTA JAMAAH SDN BHD Details of Changes: Currency - Date of Change Type Number of Shares 12-Feb-2020 Transferred 84,004,360 Registered Name Citigroup Nominees (Tempatan) Sdn Bhd - Urusharta Jamaah Sdn Bhd (1) Nature of Interest Direct Interest Nature of Interest Direct Interest Shares Ordinary Shares Reason Transfer of Ordinary Shares by the registered holder to Citigroup Nominees (Tempatan) Sdn Bhd who is the custodian and fund administrator for Urusharta Jamaah Sdn Bhd's ("UJ") equity portfolio holdings. UJ is the beneficial owner of the said ordinary shares. Total no of securities after change Direct (units) 84,004,360 Direct (%) 7.92 Indirect (units) 0 Indirect (%) 0.00 Total (units) 84,004,360 Total (%) 7.92 Date of Notice 14-Feb-2020
closing prices from RM1.26 to RM1.46. average price~ RM1.36 from May 8 to June 4. closed at 1.32 today. 6sen from the lowest price and 12 sen from the highest price from may 8 to june 4. quite moderate (tak melampau), belum ada major rebound macam banking, glove, etc yet. sigh!
virus pandemic will end. Now, oil price is recovering speedily. :)
Global benchmark Brent hit a three-month high today on reports suggesting that OPEC+ is moving towards an agreement to extend production cuts.
He pointed out that Brent has now doubled in price from its lows in April.
The OPEC and allies are expected to meet tomorrow.
The ringgit was traded higher against a basket of benchmark currencies.
It rose against the Singapore dollar to 3.0480/0537 from 3.0503/0547 and was higher against the Japanese yen at 3.9149/9224 from 3.9686/9736.
The local note advanced against the British pound to 5.3638/3743 from 5.3715/3787 and improved against the euro to 4.7769/7856 from 4.7790/7859 at the close yesterday.
It was over now when the Brent has now doubled in price from its lows in April. Oil price is Uptrend again.
Dayang: the worst is over By Koon yew Yin 8 March 2020
Practically all the listed shares including Dayang are affected by our recent political upheaval and the Coronavirus outbreak in Wuhan. No investors dare to boast that their holdings are not affected.
As you know, Dayang has gone up from 50 sen to a high of Rm 2.94 within 13 months and during this period I have posted many buy recommendations. Only fools did not follow my recommendation to buy Dayang.
Due to our political upheaval and Coronavirus outbreak Dayang price crashed. I am not ashamed to admit that I too have margin call and I sold some at prices above my cost. I believe the worst is over.
Dayang: the worst is over By Koon yew Yin 8 March 2020
Practically all the listed shares including Dayang are affected by our recent political upheaval and the Coronavirus outbreak in Wuhan. No investors dare to boast that their holdings are not affected.
As you know, Dayang has gone up from 50 sen to a high of Rm 2.94 within 13 months and during this period I have posted many buy recommendations. Only fools did not follow my recommendation to buy Dayang.
Due to our political upheaval and Coronavirus outbreak Dayang price crashed. I am not ashamed to admit that I too have margin call and I sold some at prices above my cost. I believe the worst is over.
Striking a bullish note, however, Russia's Energy Minister said the oil market in July could face a shortage of 3-5 million bpd, Interfax news agency reported. - Reuters
Oil has long been the engine of the world's economy, and even today—as the search for alternative energy sources gains ground—life without crude oil is hard to imagine. Carbon-based fuels are used in heavy and light manufacturing, in the production process (chemicals, textiles, detergents, and medicines), and in every sector of our transportation industries.
Brent crude oil prices have averaged US$41per barrel while the current spot price has recovered to US$39 per barrel from the year-low of US$14 on April 22.
Among o&g stocks, dayang is more steady . Best option for waiting for oil rebound or rotational play from glove to healthcare to banking then finally oil pulak
Investment banks Beli, bagaimana dengan anda pulak? :) Artikel April ini Dah using tapi kini Brent price Dah double sekarang , Bulan Jun ini :)
Dayang: Investment Banks buying aggressively Koon Yew Yin Koon Yew Yin 2 months ago
Koon Yew Yin 3 April 2020
Yesterday the price shot up 20 sen from Rm 1.15 to close at Rm 1.35, with 64.8 million shares traded. As you know, the daily trading hours are from 9 am to 12.30 and from 2.30 to 5 pm, a total of 6 hours. If you divide 64.8 by 6 = 10.08 million shares traded in 1 hour. In the last couple of weeks, several tens of million shares were traded daily.
Only Investment Banks have so much money to buy so aggressively. Moreover, you cannot see any Investment Bank publish buy recommendation. They are happily buying and thousands of small of small ikan bilis are selling to cut loss.
I wish to point out that Public Invest published a buy recommendation which was carried by The Edge quote “Dayang Enterprise Holdings Bhd (Feb 5, M2.80) Upgrade to trading buy with a target price of RM3.15: Dayang Enterprise Holdings Bhd is starting to make its presence felt internationally, clinching an umbrella contract in Thailand for the provision of modification works for Block B-17 & C-19 and Block B-17-01.” Unquote.
You can read the whole article which I posted a couple of days ago and you must not forget.
During that period, Investment Banks would encourage you to use more margin finance to buy more shares. Due to force sell, Bursa Malaysia has issued instruction to stop force selling.
You can see from the above price chart that the price has been going up higher and higher in the last few weeks. Based on the rapid rise in the last few weeks, the up-trend reversal is confirmed. Never sell an up-trending stock.
Don’t be so stupid to sell an up-trending stock and be cheated.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Fattymin
245 posts
Posted by Fattymin > 2020-06-03 16:40 | Report Abuse
when the qr out?