The price of Oil has since then touched a low price of US$32 per barrel on 12 February
2009 and subsequently stabilised around US$ 60 a barrel for the past months. The price
of Oil is a good barometer for measuring the well being of the world economy and has
increased by more than 30% since January 2009. The increase of price of the Oil may
be due to many factors and has to a certain extent indicate the outlook/forecast of world
economy. The increase in the price of Oil may be due to improved growth prospect, the
improved economy, especially when the outlook for economic giants US and China has
improved substantially, derived from US and China economic data from their respective
Central Bank. Oilcorp Berhad with core business centered around the Oil and Gas
Engineering, Procurement and Construction (EPC) of Offshore Facilities, the performance
of the Group very much depends on the investment by Oil Majors and Production Sharing
Contract (PSC) Operators which in turn is dictated by the price of Oil.
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The global economy has been
experiencing some major challenges for the last one or two years. Firstly
the unpredicted price hikes of Oil to an alarming height of US$147.27 per
barrel last July and thereafter, the subprime crisis in US which eventually
led to credit crunch worldwide. |
Sunny Ng Huat Tian
Chairman |
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