The Energy Index dropped 0.8% as Brent crude prices slipped below $78 per barrel. However, oil and gas services companies like Velesto Energy Bhd showed resilience, supported by strong contract backlogs.
The Malaysian Energy sector faced downward pressure as Brent crude prices dipped to $77.80 per barrel amid renewed concerns over global demand and OPEC+ production compliance. The Energy Index subsequently fell 0.8%. Heavyweights like Petronas Chemicals Group Bhd dropped 0.3%. Despite this, Oil and Gas Services and Equipment (OGSE) firms showed resilience. Velesto Energy Bhd (VELESTO) closed flat at 28 sen, underpinned by high rig utilization rates and a robust contract backlog. Analysts suggest that while crude prices are volatile in the short term, the long-term contracts secured by the OGSE segment ensure stable revenue streams, differentiating them from pure upstream producers.
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