SINGAPORE (Oct 7): UOB Kay Hian is maintaining its “underweight” call for the offshore and marine sector citing flat capex from oil majors despite improved sentiment from OPEC cuts.
Foo Zhi Wei, lead analyst of a Friday note, however concedes there are trading opportunities and a possible rebound.
Without any cut in supply, oil prices have risen 7.8%. But Foo says the cuts by OPEC will only return production to 2Q16 levels, which points to oil prices of US$50 to US$60 per barrel.
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