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2026-02-19 10:03:08
[Institutions: Short-Term Disruptions in the Strait of Hormuz Unlikely to Change Oil Market Fundamentals; Structural Oversupply Remains the Main Theme] 1. MBSB Research noted in a report that Iran's recent temporary closure of parts of the Strait of Hormuz and its live-fire military exercises have temporarily increased geopolitical risk premiums and exacerbated volatility in the crude oil market. However, the institution believes that supply and demand fundamentals are expected to remain stable, and the price impact will be temporary unless the disruption evolves into a long-term event. 2. The institution maintains a "neutral" rating on the Malaysian oil and gas sector, citing the still challenging global macroeconomic backdrop. Crude oil prices are expected to remain low due to structural oversupply in the market; geopolitical factors can only trigger short-term price fluctuations and are unlikely to drive sustained upward movement. 3. MBSB lists Dialog as its top pick in the sector due to its defensive midstream exposure, which provides relatively stable performance in a volatile environment.
