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Showing posts with the label Oil Price

A Walk in the Park with Cypark Resources Berhad (5184)

Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company! This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are: 1. Environmental engineering: Provision of nature conservation and environmental improvement services. 2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development. 3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities. 4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy project

Oil prices are going up. And here are the reasons why.

Rising oil price is positive for oil and gas counters. Based on the chart of West Texas International (WTI), the worst seems to be over for oil. But will this bullish environment last?  Based on the price chart of West Texas International below, it seems that prices have convincingly breached the $60 level. Chart 1: West Texas International Chart as of May 4, 2018 Demand  According to OPEC’s April 2018 estimates, daily world oil demand has been on the increasing trend; growing from 97.07 million barrels per day (mb/d) in 2017 to 98.7 mb/d in 2018. Besides, oil demand is expected to exceed the historical threshold of 100 mb/d in the fourth quarter of 2018. Based on the above OPEC statistics, the increase in the demand for oil in 2018 of 1.63 mb/d is due to increase in demand from China of 0.42 mb/d, US of 0.23 mb/d, India of 0.20 mb/d, and Africa of 0.14 mb/d, refer to Table 1 below on Oil Demand in 2018. The demand for oil in other regions was relatively unchanged for the same ye