Not all O&M players to gain from oil price recovery

SINGAPORE (Dec 5): CIMB is upgrading the offshore and marine sector to “neutral” as it forecasts higher crude oil prices of between US$45 and US$60 per barrel.

Lead analyst Cezzane See notes that the new Trump’s vow to become an energy-independent US could accelerate OPEC’s output ceiling of 32.5 million barrels per day and non-OPEC’s cuts of 600,000 barrels per day from Jan 2017.

“This would lead to production deficits, driving prices above 2016’s average US$43.5-US$44.9 per barrel, in our opinion,” says See.

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