“The agency highlighted that crude oil production cuts announced by OPEC+ in early June ‘will put some upward pressure on crude oil prices, notably in late-2023 and early-2024’,” he says.
UOB Kay Hian analyst Adrian Loh has maintained his “overweight” call on the offshore & marine (O&M) sector as demand for oil is expected to grow even though oil prices have come off their highs in 2023.
In his July 12 report, Loh notes that the US Energy Information Administration (EIA), in June, had upgraded its oil demand forecast for 2023 and 2024 by 0.5% for both years to 1.6 million barrels per day (mmbpd) and 1.7mmbpd respectively.
