CRUDE OIL PRICE SHOULD GO UP IN 2010, SAYS OSK RESEARCH

KUALA LUMPUR, Oct 6 (Bernama) -- Crude oil price should go up in 2010 in
line with a better economic outlook, spurring the award of new oil and gas
projects, according to OSK Research.

The research firm said that its forecasts for crude oil price are US$60 to
US$70 per barrel for this year and US$70 to US$80 per barrel for 2010.

"In fact, we believe prospective projects are due to be awarded anytime now
since the oil majors have been holding back on spending over the past one year
due to uncertainty in the global economy," OSK Research said.

Crude oil price has been recovering since the first quarter of 2009, hitting
an average US$68 per barrel in the third quarter, it said in a research note
Tuesday.

OSK Research also remained bullish on the oil and gas sector on expectation
that the crude oil price will eventually go up as it is a scarce recource
without a commercially viable substitute.

It said the demand for oil and gas was also picking up as economic
activities in the global market gained momentum and the global economy was
gradually pulling itself out of recession, which may spur demand for energy.

"The oil and gas industry has been quiet for the past one year and we think
that new contract awards would come in soon as there has been no indication of
major capital expenditure reduction by the oil majors," OSK Research said.

"But once the tap is turned on and contracts start to flow, the future
earnings of local supporting oil and gas companies would be upgraded and a
fundamental upward re-rating on the sector would follow," it said.
-- BERNAMA