With Brent crude on an upward trajectory, one should expect some “positive vibes” coming out from the O&G sector.
In tandem with the recovery in oil prices, there is a rebound or recovery in the share price of Sapura Energy (SAPNRG). Upward momentum in its share price may be possible if it can sustain above the resistance point of around $0.85.
There is a significant level of divergence between the share price of SAPNRG and Brent since Q2 2016. It could imply that either the recent recovery in oil price has overrun its fundamentals or simply, SAPRNG has been oversold. In addition, it could also mean that company specific risks have dominated SAPNRG, thereby detaching it from the general O&G sector.
The bigger question that one should ponder, is whether the recent recovery in global oil price is sustainable in the long run?
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