KUALA LUMPUR, April 11 — Public Investment Bank has maintained its "overweight” call on the oil and gas sector (O&G) as oil prices may stay elevated in the range of between US$100 and US$110 per barrel this year.

The research house said the ban on Russian oil and gas by the US and its allies would push the oil prices to the range of US$100 and US$110.

"While the release of strategic oil reserves should cushion the impact, this is not sufficient as it represents only a one-month offset to a potential disruption of Russia’s six million barrels oil exports per day,” Public Investment said in a research note today.

Hence, it maintains its "overweight” stance on the sector with Hibiscus Petroleum remaining the top pick for the sector.

On the projected increase in investment in the upstream oil and gas segment, Public Investment said the oil price outlook for 2022 indicated that spending on the upstream oil and gas segment is set to increase as oil prices are stable at around US$100 per barrel.

The ongoing war in Ukraine is expected to derail the energy transition while upstream oil and gas spending is now projected to grow 16 per cent year-on-year or US$142 billion according to Rystad Energy, as global oil and gas producers increase their investment budgets to increase output. — Bernama