Kenanga Research sees oil price recovering in second half of the year

PETALING JAYA: A higher magnitude of inventory draw-down and increased crude oil consumption, coupled with the possibility of deeper production cuts by the Organisation of Petroleum Exporting Countries (Opec), could see prices recover in the second half of 2017.

Kenanga Research expects better fundamentals for the sector in the second half, noting that while the rig count in the US continue to rise, the pace of increase is seen moderating in the near term.