How to position yourself in an O&G sector ‘still caught in the doldrums’

SINGAPORE (Dec 19): 2017 is to remain a challenging for year oil services & equipment providers even with the gradual recovery of oil prices, says DBS Vickers Securities, which has rated the sector as “underweight” in its Market Focus 2017 Outlook report.

According to analysts Suvro Sarkar and Ho Pei Hwa, oil price levels could be capped around US$60-65/bbl in the medium- to long-term.

Although they see a possibility of recovery from mid-2018 onwards if capex budgets for 2018 are revised upwards, the analysts believe there will be no immediate rebound for offshore support vessel (OSV) owners.

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