“While potential oil price pullback might cap the upside of upstream plays, sustainable oil price above US$60/bbl level should drive capex expansion and benefit players down the value chain,” states Sarkar.
SINGAPORE (Jan 23): DBS Vickers Securities is maintaining its “overweight” stance on the oil and gas (O&G) sector given the recent oil price rally, which has driven up O&G stocks to directly benefit oil majors leading the rally.
In a Tuesday report, lead analyst Suvro Sarkar says the average Brent crude oil price for 2018 could end closer to the higher range of US$60-65 per barrel (/bbl) as forecasted by DBS – a healthy 15-20% improvement over the 2017 average of US$55/bbl.
