Pakistan Oil & Gas_Oil prices - Stability ahead' (AKD Daily, Dec 17, 2021)
Pakistan Oil & Gas: Oil prices - Stability ahead
- The uncertainty surrounding the Omicron variant of COVID-19 and roll-back of economic stimulus provided by central banks around the world has kept WTI index under pressure resultantly. It is now well below October's 3yr highs above US$84/bbl but still more than 30% up on the start of CY21.
- The supply side dynamics also look unfavorable as OPEC+ is planning to add 400k barrels per day (bpd) in production from Jan’22 while the US is also planning to release some of its stockpiles in order to ease prices.
- The United States has repeatedly pushed OPEC+ to accelerate output hikes as US gasoline prices soared. If the output increase helps keep the prices stable at current levels, the US may “show flexibility” over the release of its reserves but the development may keep the prices of the commodity in check in short term.
- We expect the prices will average US$73/bbl in the 1QCY22. While, as for CY22 as a whole, we expect that growth in production from OPEC+ and from other non-OPEC countries will outpace slowing growth in global oil consumption, especially in light of renewed concerns about COVID-19 variants. Therefore, we expect prices will remain near current levels throughout CY22, averaging US$75/bbl.
- From Pakistan’s vantage, easing-off prices will help alleviate pressures on CAD which had started to ring alarm bells once again. We continue to highlight POL as top pick from our E&P universe owing to its limited exposure to circular debt, offering a total return of 49% on the last close.
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.