REX: Brent price highest since 2018

Rex International (REXI SP): Pure play on higher oil prices 

• BUY Entry – 0.20 Target – 0.33
  Stop Loss – 0.18
  
  

• Rex
  Share price:  22.5 c	Target:  33 c

  Rex International Holding (Rex) is a pure-play oil & gas exploration and production company (Independent). It owns and operates an oil-producing field in Oman and has a portfolio of exploration licenses in Norway.
  
  This year, the company added the Brage oil field in Norway and was awarded two Production Sharing Contracts (PSCs) by Petroleum Nasional Berhad (PETRONAS), Malaysia’s national oil corporation. 
  
  
• 
  WTI prices highest since 2014; Brent highest since 2018. Oil markets are experiencing favourable supply and demand dynamics. Brent is now trading at the highest since October 2018 while WTI is at the highest since November 2014.
  
  Despite the higher oil prices, both OPEC+ and US shale are not rushing to add more supply.
  
  On Monday, OPEC+ agreed to maintain its 400,000 barrel/day supply hike scheduled each month until at least April 2022, which would phase out 5.8mn barrels/day of existing production cuts. 
  
  

Gas spillover. The shortage of natural gas in Europe has sent prices of the fuel to the oil equivalent of US$190/barrel. The shortage of natural gas is spurring a switch to oil products for heating and manufacturing, boosting oil demand by 500,000 barrels/day, according to the CEO of Saudi Aramco.

Meanwhile, demand for natural gas has exceeded pre-Covid-19 highs, according to the International Energy Agency (IEA).