In a report on Friday, analyst Suvro Sarkar says he believes any sign of supply shortfall will continue to keep an upward pressure on the price of oil, while capex looks like it is set to rise to subsequently filter down the sector value chain as well as drive the recovery of service providers and rig builders.
SINGAPORE (Oct 5): DBS is maintaining its average Brent crude oil forecasts of ~US$75/bbl for 2018 and US$75-80/bbl for 2019, with the intention to monitor developments in the coming weeks.
The move comes despite growing optimism on the possibility of oil prices rising above US$100/bbl due to talks of Saudi Arabia and Russia striking a private deal to raise production and US inventory buildup.
