Further oil price disruptions damage world economy

Petroliam Nasional Bhd’s (Petronas) domestic upstream capex will likely be moderately higher, and that will be positive for relevant oil and gas service companies, said Vincent Khoo, head of research, UOB Kay Hian.

Further oil price disruptions can cause severe damage to the fragile world economy, as sudden attacks on oil facilities become potentially more frequent.

Representing the sixth attack in four months on Saudi energy assets, the recent disruption may have caused a short spike in oil prices, but continuous strikes can have a more lasting effect on oil prices.