This is a Prediction for Brent Oil Prices

 Hong Leong IB Research (HLIB) maintained its ‘Neutral’ outlook for the oil and gas sector and re-examined the Brent oil price forecast for the fourth quarter of 2020 (4Q20) from the US $ 50 per barrel to the US $ 42 per barrel.

In addition, the research firm also reduced its forecast for Brent oil for the current year 2021 (CY21) from the US $ 55 per barrel to the US $ 50 per barrel.

HLIB analyst Low Jin Wu predicts crude oil prices will move horizontally and likely to fall by the end of the current year 2020 (CY20) due to high crude oil production from Libya, lack of demand from China, rising Covid-19 cases worldwide and strikes laborers in Norway.

He added that if Joe Biden wins the US presidential election, it will have a negative impact on oil prices due to his commitment to reducing the issue of carbon emissions.

"Biden's victory will be a key indicator of the decline in oil demand from the US while Trump's victory will have a positive impact on oil prices because the issue of global warming is not given priority by Trump.

Jin Wu added that his party believes that the prospects for the oil and gas sector are still not bright at this time despite the weakness in the previous oil prices.

"Our top choices for this sector are Bumi Armada Bhd (target price (TP): 60 sen; Buy) and Petronas Chemicals Group Bhd (TP: RM6.50; Buy)," he said.