oil production

 
 

Opec says oil market well supplied, wary of 2019 surplus

LONDON, Oct 11 — Opec sees the oil market as well supplied and is wary of revisiting a glut next year, the group’s secretary-general said today, suggesting producers are in no rush to expand a June agreement that raises output. Oil prices have…


US stocks tumble 3pc as yields soar, investors shun risk

NEW YORK, Oct 11 — US stocks tumbled yesterday, with the S&P 500 and the Dow marking their biggest daily declines since Feb. 8, and technology stocks were at the centre of the carnage as rising US Treasury yields sent investors fleeing from…


IMF reverses Iran growth, lifts Saudi forecast

DUBAI, Oct 9 — The International Monetary Fund this morning predicted Iran’s economy will sink deep in the red due to renewed US sanctions but forecast increased Saudi growth on the back of higher oil production. In its World Economic Outlook,…


Crude Palm Oil Weekly Report – October 6th, 2018

Malaysia’s palm oil futures (FCPO) were down on Friday, a fall from three consecutive sessions of gains, weighed down by concerns of rising production and technical selling despite the weaker ringgit and strong soybean oil seen during previous sessions. FCPO settled lower at 2,223, an increase of 2.44 per cent from last Friday’s closing price […]


Saudi Arabia in short-term oil fix, fears extra US supply

DUBAI: Saudi Arabia will quietly add extra oil to the market over the next couple of months to offset a drop in Iranian production but is worried it might need to limit output next year to balance global supply and demand as the United States pumps more crude. The kingdom, OPEC’s top producer, came under […]


Saudi Arabia in short-term oil fix, fears extra US supply next year

DUBAI, Sept 27 — Saudi Arabia will quietly add extra oil to the market over the next couple of months to offset a drop in Iranian production but is worried it might need to limit output next year to balance global supply and demand as the United…


Indonesia’s moratorium to be big blow for late entrants to plantations

KUCHING: Indonesia’s moratorium on plantation permits will be negative to those who are late entrants in the country’s plantation industry. According to a Reuters article, Indonesia’s government issued a presidential instruction to place a moratorium on new permits for palm plantations for three years, as part of efforts to protect forests, a presidential official said […]


Indonesia’s palm oil move will hit new players

PETALING JAYA: Plantation players who are relatively new in the Indonesian market or those with significant plantable landbank in the country are likely to be impacted negatively by the moratorium on new palm oil development, according to PublicInvest Research.

Indonesia, the world’s largest palm oil producer announced on Friday that it has signed a three-year moratorium on new palm oil plantation development and will review existing plantation permits. The order is aimed at improving the sustainability of palm oil plantations.

The temporary ban is likely to improve productivity of small owners and also help clarify land ownership.

The research house is of the view that given Indonesia’s self-commitment towards the policy, there could be tighter implementation in terms of reviews of plantation permits such as Izin Lokasi (Location Permit), Izin Usaha Perkebunan (Plantation Permit), Hak Guna Usaha (Development rights) across all provinces.

To recap, Indonesia and Norway had inked an US$1billion (RM4.13 billion) agreement for a moratorium on new permits to clear primary forest in a bid to reduce greenhouse gas emissions from deforestation, forest degradation and the destruction of peat – in 2010.

However, studies show that Indonesia failed to reduce its emission from deforestation and forest degradation while more than 9.9 million ha was converted into plantation area overs 2010-2015.

Going forward, moratorium is expected to slow down the production growth of fresh fruit bunch, which in turn will support palm oil prices and ease concerns on oversupply.

The move is also expected bring down the growth of average crude palm oil from 2020 onwards, which was initially projected to grow at 3%.

Indonesia, which accounts for 51.7% of global palm oil production, is expected to see a year-on-year increase of 5.5% to 38.5 million tonnes this year.

Ta Ann Holdings Bhd is the only Malaysian company unlikely to be affected by the policy as it has no exposure in Indonesia.

TSH Resources Bhd, which has close to 90% of its plantation landbank in Indonesia, has already slowed down new plantings (less than 500ha per acre) a few years ago.

Public Invest said yesterday that stocks under its coverage will not be significantly impacted as majority of them have almost fully planted their landbank in Indonesia.

Among the stocks covered by PublicInvest – IOI Corp, Kuala Lumpur Kepong, Sime Darby Plantations were rated as “neutral” while Genting Plantations and Ta Ann received “overweight” ratings.

The Plantation Index of Bursa Malaysia was down 26.77 points or 0.35% to 7,525.42 points.

Pinehill Pacific Bhd, which said it was selling its palm oil estate in Perak for RM413.75 million last week, jumped 22.7% yesterday closing at 54 sen. United Plantation Bhd was the second biggest loser for the day losing 30 sen of its share price to close at RM26.82 a piece.

KLK’s share price shed 0.1% to RM25, with 137,500 shares traded. Ta Ann lost one sen to RM2.73 with 2,600 shares traded.


Oil jumps 2pc as market tightens, more gains seen

LONDON, Sept 24 — Oil prices rose 2 per cent today as US sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as US$100 per barrel. Brent crude hit its highest since May at…


Further upside to Serba Dinamik with favourable outlook

KUCHING: Analysts have revealed that they see further upside to Serba Dinamik Holdings Bhd’s (Serba Dinamik) earnings per share (EPS) growth with CSE Global (CSE) riding on a favourable outlook in the shale-oil production space. Affin Hwang Investment Bank Bhd (Affin Hwang) highlighted this after recently hosting Serba Dinamik and CSE management on a NDR […]