“There was no meaningful pick-up in activity if you compare the previous quarter and the current quarter. One is the write-downs to reflect current oil prices, while the other is the reduction in the asset value due to a lack of cash-generating ability. As it stands, companies are set to endure another tough quarter despite the positive sentiment arising from the Opec deal. Despite the positive market reaction immediately following the announcement, it remains to be seen if Opec members can commit to the cut. Iraq and Venezuela’s economies are both in precarious positions and can ill-afford to maintain a prolonged production cut.

Source: The Star December 02, 2016 23:29 UTC