KUALA LUMPUR, July 4 — The Energy Index, which tracks oil and gas companies’ share prices on Bursa Malaysia, declined in the morning session today amid recession fears as well as supply constraints due to lower output from the Organisation of the Petroleum Exporting Countries and sanctions on Russia.Meanwhile, Petron Malaysia Refining & Marketing as well as Hengyuan Refining Company Bhd were among the top losers, declining 13 sen to RM5.40 and 12 sen to RM4.53, respectively.
“That said, we would like to stay conservative, with a relatively lower year-on-year projection in 2023 and 2024 at US$85 per barrel and US$75 per barrel. This is largely premised on a gradual increase in global supply and the higher possibility of an economic slowdown,” it added. Recently, JPMorgan warned that the global oil prices could reach US$380 per barrel if penalties imposed by the United States and European Union would prompt Russia to retaliate with crude output cuts.