SINGAPORE (Jan 16): Oil prices have floated to near 17-month highs, with sentiment within the oil and gas (O&G) industry lifted by OPEC production curb agreements.

However, Daiwa Capital Markets is keeping its “negative” view on Singapore rigbuilders amid a challenging order-win environment in 2017.

“The offshore drilling sector remains bogged down by a supply glut, an issue that is unlikely to be resolved in the coming 12 months,” says Daiwa analyst Royston Tan in a Friday report. As a result, Tan believes the Singapore rigbuilders will “struggle to maintain their profitability”.

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