KUALA LUMPUR (April 10): Asian integrated and upstream oil and gas (O&G) companies should see their profits rise, on the back of the accelerated recovery of their upstream earnings, according to Moody's Investors Service. In its latest edition of the Asia Oil & Gas Quarterly, Moody's pointed out that the improved oil price environment as well as cost rationalisation will provide an upside to earnings. "In addition, we expect that upstream acquisitions will increase, based on the announced divestment plans of global O&G majors in Asia," said Moody's assistant vice president and analyst Rachel Chua. "Prices in the upper half of the oil price band would support increases in crude oil output, in particular due to rising US shale oil production, where production costs have fallen significantly," it added. Specifically, Moody's expects a healthy refining margin of US$5 to US$5.50 per barrel over the next 12 to 18 months.

Source: The Edge Markets April 10, 2017 03:45 UTC