According to TA Research, in the unlikely event of the war escalating and spreading to the broader Gulf region, Brent crude oil price could breach the US$150 per barrel level. As such, it maintained its Brent crude oil price assumption at US$83.50 per barrel for 2023 and US$85 per barrel for 2024. In its thematic report yesterday, TA Research noted that Malaysia, as a significant oil-producing and exporting country, could benefit from rising commodity prices. “Rising oil prices not only boost government revenue but also profoundly affect Malaysia’s fiscal position,” TA Research said. Besides, at this level, the FBM KLCI would be trading at a very attractive one-time multiple to 2024 PBV.

Source: The Star October 21, 2023 01:08 UTC