Singapore O&G stocks up after Opec+ cut, but economists warn of higher oil prices adding to inflationary pressures

HIGHER oil prices on the back of a fall in oil production appear to have boosted the prices of several oil and gas (O&G) counters listed on the Singapore Exchange (SGX). But economists caution that high oil prices could also weigh on Singapore’s economy, particularly since the city-state is a net oil importer.

The grouping Opec+, which comprises members of the Organization of the Petroleum Exporting Countries (Opec) as well as major non-Opec oil producers such as Russia, on Sunday (Apr 2) announced it would cut oil output by about 1.2 million barrels per day (bpd). 

Reuters said this brings the total volume of pledged cuts by Opec+ to about 3.7 million bpd since October last year, equal to 3.7 per cent of global demand.