Oil market remains supported by demand uptick
Suvro SARKAR +65 81893144; suvro@dbs.com
Pei Hwa HO +65 6682 3714 peihwa@dbs.com

OPEC meeting breakdown not a big issue

• OPEC+ meeting on proposed increase in oil output called off after UAE refused to back down over disagreements with Saudi Arabia
• UAE wants more leeway on increasing its oil production and is not keen on the production cut agreement extending beyond April 2022
• Market dynamics dominated by demand uptick rather than supply for now, hence oil prices likely to stay well supported in near term
• Quarterly oil price forecasts revised up slightly, we continue to like oil proxies like CNOOC, PTTEP and Petrochina