Malaysia’s Petronas sees oil demand fragile and uncertain

KUALA LUMPUR, December 28 (Reuters)Malaysia’s state-owned energy company Petronas said on Tuesday it expected the recovery in oil demand from the impact of the coronavirus pandemic to remain fragile and uncertain over the next few years.

In its 2022-24 business outlook report, released on Tuesday, Petronas said: “The path to a sustained recovery in oil demand remains fragile and uncertain due to the emergence of new variants of COVID-19. which trigger new waves of confinement”.

He said industry players were optimistic about the economic recovery but remained cautious. “The smarter approach would be to step up efforts collectively and be prepared for oil price volatility,” he said.

After 2024, Petronas said it expects a positive outlook for the rig business as it continues to improve and upgrade capabilities. It also expects a stable outlook for the manufacturing of fixed structures and underwater installations as it continues its efforts to monetize its oil and gas resources.

Liquefied natural gas spot prices are expected to be volatile over the next several years due to weather conditions and potential policy shifts that could alter supply and demand dynamics, he said.

(Reporting by Liz Lee; Editing by Kenneth Maxwell)

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Felix J. Dixon