Cautious optimism on oil and gas sector

Kenanga Research said the upstream services market saw a significant uptick in activity in 2024 and it expects this trend to continue into 2025.

PETALING JAYA: Kenanga Research has maintained its “overweight” rating on the oil and gas (O&G) sector, citing strong fundamentals despite temporary volatility in oil prices.

The firm trimmed its Brent crude futures forecast to US$80 per barrel from US$84 for 2024 and US$77 per barrel from US$80 for 2025 due to a weaker global demand outlook, particularly from China.