JAKARTA (Yosefardi) – Oil and gas company PT Medco Energi Internasional Tbk (MEDC) allocates capital expenditure (capex) of US$250 million for this year, a 24.2% decline compared to US$330 million capex last year, as the company focuses on cost efficiency amid the declining trend of oil price.
Nymex’s crude oil rose 1.25% to US$49.45 per barrel in Asian trading this morning. MEDC cuts costs by almost 30% at all operations area, to maintain its cash flow until the oil price to recover.
The International Energy Agency said Tuesday that global oil prices will recover only partially from spectacular lows, which are unlikely to spur economic growth or kill off US shale gas production.
While Tom Kloza, chief oil analyst at Oil Price Information Service, predicted that oil prices would bottom during the second quarter of the year, Reuters reported. the International Energy Agency said Tuesday. Oil prices will get a heck of a lot worse before they get better, Tom said on Tuesday.