Petronas considers three factors in oil price outlook

KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) outlook on oil prices would consider three factors, namely supply, demand and speculations.

In a statement yesterday, its President/ Group Chief Executive Officer, Tan Sri Wan Zulkiflee Wan Ariffin said congruence of many events, particularly the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC voluntary production cuts, has helped boost oil prices.

“We also see some supply disruption in Libya. The demand side is looking good globally and we expect this to continue in the next few years,” he said in an interview with Bloomberg TV in Davos, Switzerland.

He said the national oil and gas company would also monitor events that were happening in the Middle East, North Korea and other parts of the world that could affect crude oil prices.

Wan Zulkiflee said in the past few years, Petronas had taken various strategic initiatives in terms of its housekeeping, in respond to the drop in oil prices.

“For 2018, the company will focus more on growth through a three-pronged strategy.

“This include looking at our cash (housekeeping) and secondly, expanding our core business, where we are looking at ways to extend the value chain of our business.

“Thirdly, to look into things that are new to us, for example, the potential of being involved in renewables such as solar and other new energies,” said Wan Zulkiflee.

While being optimistic, he also anticipated three major challenges that could impact the company moving forward.

This involves investment in talent, especially in new areas of business, oil price cycles and the development of renewables against fossil fuels. — Bernama