Oil price at US$80 may be the grease for an O&M recovery

Singapore

THE rise in Brent Oil to above US$80 a barrel since late September has fanned expectations that the beleaguered offshore and marine (O&M) sector is seeing light at the end of the tunnel.

But the rising tide will not lift all boats and investors should look to several pointers flagged up by industry analysts ahead of the upcoming financial reporting season.

For a start, look upstream where sustained, higher oil prices directly benefit exploration and production (E&P) players, the so-called top-feeders in the O&M value chain.

Last week, oil major BP indicated it would raise its planning oil price to US$60-65 this …