Weak Oil Prices, Forecast Of Lower Demand Hit O&G Stocks
KUALA LUMPUR, Nov 14 – The weak crude oil price and the forecast of lower demand, dampened oil and gas-related counters on Bursa Malaysia in the morning session. At 12.30 pm break, Petronas Chemicals led the losses, to fall by 25 sen to RM5.60. UMW Oil and Gas lost 12 sen to RM3.10, Shell Refining eased 10 sen to RM5.60 and Petronas Dagangan declined six sen to RM19.44.
According an international news report, the European crude benchmark, Brent, continued its downtrend, to fall below US$80 per barrel, as the Organisation of Petroleum Exporting Countries (Opec) continued to resist calls to cut output despite prices reaching four-year low. The situation has deteriorated as Opec forecast oil demand for 2015 to drop to 29.30 million barrels per day, almost one million barrels lower than the current production, it said.
“The last time the Brent crude oil price was traded under US$80 was in September 2010,” it said. It said selling prices below US$80 would put pressure on oil producing countries as many deemed it unprofitable and many oil exporting countries based their budgets on oil prices.
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