Common Contracts

Regional Oil & Gas

April 9th, 2020

• Filed
  April 9th, 2020

• Top regional picks: PTT Exploration & Production, Keppel, and Dialog. Top Picks Target Price The OPEC+ agreement concludes with unprecented production cuts for a PTT Exploration & Production – BUY THB91.00 2-year period and G20 nations expected to curtail 5mbpd. This agreement Dialog (DLG MK) – BUY MYR3.66 straddles between market intervention and natural rebalancing. Crude oilprices need to be low enough for higher-cost producers to curtail production, Keppel Corp (KEP SP) - BUY SGD7.60 but high enough to lessen the pain for OPEC+. Although the deal will notbalance the market now, it does pave way for a stronger 2H20 recovery.• OPEC+ agreement concludes with OPEC+ cutting 9.7mbpd for May-June and restraining 7.7mbpd for the rest of this year. Outside OPEC+, a 5mbpd production curtailment is expected. Our crude oil price forecasts are now USD28.00, USD37.00, and USD45.00/bbl for 2Q20-4Q20, USD40.00/bbl for 2020, and USD55.00/bbl for 2020-2021.• With the OPEC+ agreement finalised, its