oil prices

Why Asia should worry about Middle East risk

SINGAPORE (Jan 10): The new year began with shocking developments in the Middle East. While financial markets have corrected, the response to the clashes between the US and Iran has been relatively muted, perhaps because investors are assuming that there is only a limited chance that the clashes would spiral into an expanded conflict. However, I believe that such a view is a tad complacent. The escalating tensions between the US and Iran in recent days mark a steep increase in political risks, and the Asian region will not be spared its implications.

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Oil demand to languish this decade says IEA; US presidential cycle points to equity gains

SINGAPORE (Jan 10): Simmering tensions between the US and Iran have spilt over into a war of words and some missile strikes, one of which killed an important Iranian general. The US says no one was killed. So far, these exchanges have resulted in a knee-jerk spike in oil prices and some volatility in equity markets. But this did not last in the face of tepid oil demand and the US presidential cycle.

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Cautious outlook on US market with recession fears; central banks more responsive in pulling levers

From left to right: OCBC economist Howie Lee,  CEO of TD Ameritrade Singapore Chris Brankin, Head of economics and strategy at Mizuho Bank Vishnu Varathan

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Investors need to diversify amid market volatility, says DBS in 4Q outlook

SINGAPORE (Oct 3): The investment landscape is quickly changing, amid ongoing US-China trade tensions as well as fluctuations in gold and oil prices. And, to ride the wave of uncertainty, DBS Bank has one key piece of advice for investors: Diversification is key.

In the bank’s 4Q outlook on Thursday, aptly themed “Ride the Wave”, DBS Chief Investment Officer Hou Wey Fook focused on how investors should grapple with the “new normal” marked by near-zero to negative cash and bond yields. 

CSE kept at 'buy' by UOB, RHB on stronger outlook with 4Q contract wins

SINGAPORE (Jan 16): UOB Kay Hian and RHB Research are reiterating their “buy” calls on CSE Global after the group announced it secured $84.8 million worth of infrastructure projects in 4Q18.

Both research houses have a 59-cent target price on the stock.

4 ways the O&G sector continues to face protracted soft conditions: Phillip

SINGAPORE (Apr 16): Phillip Capital is of the view that Singapore’s oil and gas (O&G) sector is facing an extended period of soft conditions.

To begin with, banks have now become the de facto owners of vessels, rigs and other facilities taken over from loan defaulters, and are now facing difficulty in disposing of such assets, in the research house’s view.  

China Aviation Oil's FY18 prospects are encouraging despite lower margins, says Edison

SINGAPORE (Apr 3): Edison Investment Research has lowered its fair value on China Aviation Oil (CAO) to $1.82 from $1.88 after the research house rolled forward its peer group and DCF-based valuations by a year.

This is to reflect lower gross margins forecast for CAO’s core oil trading and supply operations, after the group in Feb posted a 21.7% fall in 4Q earnings to US$14 million on higher oil prices.

Rescued Otto Marine buckles under debt woes

SINGAPORE (Feb 23): A Singapore shipping company rescued by its chairman just over a year ago faces collapse unless the courts step in, a sign that an earlier slump in oil prices is still reverberating.

Higher oil prices to improve Singapore Airlines' competitiveness

SINGAPORE (Feb 22): CIMB is reiterating its “add” recommendation on Singapore Airline (SIA) with a target price of $12.05.

SIA on Feb 13 announced that its 3Q earnings jumped 62% to $286.1 million from $177.2 million a year ago.

Revenue was 6.0% higher at $4.08 billion compared to $3.85 billion last year, attributed to revenue improvements in all business segments.

More pressure on bonds

SINGAPORE (Jan 30): The Federal Reserve has been happy to raise interest rates very slowly despite tight labour markets because of low inflation. However, there are now signs that the underlying pace of price rises is close to the Fed target. This means that interest rate hikes will have to continue and we will see more pressure on bonds.

Inflation has been running well below the Fed’s 2% target over the past year, but this is set to change over the next few months, for three reasons.

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