KUALA LUMPUR (April 7): The Organization of Oil Petroleum Exporters (OPEC) and its allies still have a consensus on reducing production, especially the Russian-producing oil industry, which caused oil to fall by 3% on the previous day. The oil and gas companies that have fallen to the east sell pressure. Still covered.
Oil and gas events were led by Hengyuan (HENGYUAN, 4324, Prime Minister Energy Group) today, followed by Petronas Chemical (PCHEM, 5183, Prime Ministerial Product Service Group) and Malaysian Gas (GASMSIA, 5209, Prime Minister of Service).
At the end of the market, Hengyuan fell 10 without, reported RM4, 95, and the National Petroleum Research Journal, RM19, 10 without, no losses, Malaysian gas dropped 2 without, to RM2,85 without.
Since OPEP had not announced a decision to cut production at the end of the meeting on Thursday, it was ready to discuss the issue on Friday, causing international oil to fall. At the end of New York on the same day, Brent raw oil drops fell $ 1.50 or 2.4% to $ 60.06 barrel, while New York's crude oil futures also dropped $ 1.40 or 2.7% to $ 51.49 barrel.
During the Asian commercial hours on Friday, the international oil has passed in narrow range. Brent crude oil futures rose 0.17 US dollars or 0.28% to 60.23, US dollars per barrel, and New York crude conditions also raised 0.06 US dollars or 0.12% to 51.55 US dollars per barrel.
Analyst: Production cut will expand
Analysts are still waiting for OPEP to decide to make some form of supply cuts. Mitsubishi UFJ Financial Group said: "We will begin to see plans to cut production again. In addition to OPEC's daily production of approximately 1 million barrels, we will also press other non-member countries to cut production more."
Although the oil countries of the Middle East hope to invest the latest drop in oil prices to constitute government spending, Russia's sensitivity is different, the Russian government has now achieved a budgetary excess, and the weakening of the ruble has affected the impact of reducing prices from petroleum
According to Bloomberg, according to the Kremlin official, the Russian government sets the impact of rising oil prices on Russian consumers, because it can cause disruption to economic policies.
As the largest oil producer of OPEP +, although Russia has agreed to cut production in principle, Vienna's conversations have not confirmed specific reductions in production. The OPEC delegation has previously said that Saudi Arabia tends to reduce production of about 300,000 barrels a day in Russia, while Moscow is only planning to cut production of about 150,000 barrels.
The global economic slowdown caused a weak demanding perspective, while the supply arose, so raw oil dropped by 30% since October, and petroleum and gas states were hitting hard.
Petronas repeats $ 66 oil price
Analysis: The oil and gas industry blows a cold wind
Although oil prices have dropped less than $ 60, Petronas repeated that the prices of oil in 2019 have remained at $ 66 in a barrel. Analysts expect Petronas to retain money and not easily transmit new contracts, and the oil and gas industry is still blowing.
Thus, Sri Wang Zujifili, president and head of Petronas, said on Thursday that the $ 66 is the basis of the business activities.
"We do not adjust forecasts every season, so we'll keep $ 66 in barrel next year."
Kenanga research believes that current oil is pressing, Petronas will not fulfill too much capital charges, especially Petronas needs to pay higher dividends to the government, along with a special dividend of RM30 billion, 2019 dividends expected for RM54 billion, dividends for 2018 and 2017 There are only $ 26bn and RM16 billion.
"In addition, the complex Bianjialan project is almost complete, which means that the main income can be reduced, and more mature products can be launched to meet cash flow."
The machine investment bank is more optimistic that the current oil is still higher than the US $ 52 per barrel established by Petronas in 2018. It believes that national oil development will not change much. It is worth mentioning that excluding the promised special dividend of RM30 billion, Petronas still holds RM960 billion in direct money.
Petronas's performance in the first nine months of this year decreased by 7% to RM7 billion. The Malaysian low bank believes that Petronas will launch a new operating model, including a self-regulating cost and profit model that will promote the development of deep seeds and attract More investors coming to Malaysia to develop related businesses.
Regarding oil prices, the lower investment bank said that, according to the US productions, increased by 20% to 11.7 million barrels every day, it decided to lower the price of petroleum from $ 70 to $ 75 per barrel up to $ 65 to $ 70.
It confirms that the total contract value of the petroleum and gas sector in the first nine months of this year increased by 26% to RM7.5 billion compared to last year, so the recent decline in oil prices has little impact.
After many considerations, the Malaysian investment bank and Kennamet called the petroleum and gas sector as "neutral", Daile Group (DIALOG, 7277, main board energy), Shiba Power (SERBADK, 5279, main board energy) and cloud Sheng Holdings ( YINSON, 7293, Head of Energy Group) are included as preferred supplies.
Undecided Newspaper / Finances ‧ Report: Xie Wangchao ‧2018.12.07