Research & Stock Picks

Company Reports

07 February 2025

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Oil Weekly (31 Jan – 06 Feb 2025): Avg. USD 75.6/bbl (-2.3% WoW)

Recent Catalysts Driving the Price

  • In the last five trading days, Brent prices fell to USD 75.6/bbl (-2.3% WoW), while WTI slipped -1.9% WoW to USD 72.0/bbl, pressured by renewed Trump policies and escalating US-China trade tensions, which dampened market sentiment.
  • Oil prices dropped over 2% on Wednesday following reports of +8.7 Mmbbl surge in US commercial crude inventories for the week ending 31 January 2025, bringing total stockpiles to 423.8 Mmbbl (+2.1% WoW). Additionally, China’s 15% tariff on US oil imports further weighed on US exports.
  • Given persistent bearish sentiment from rising inventories and escalating trade tensions, we maintain our oil price forecast at USD 72/bbl (YTD: USD 77.9/bbl), as price pressure is expected to persist alongside potential supply increases from the US and OPEC+. Stock-wise, MEDC remains our top pick (TP: IDR 2,200; FY25F EV/EBITDA: 5.1x), supported by resilient fundamentals and strong cash flow.

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