
Chart of the Day: September’s rebound in transport engineering is no cause for celebration
Crude oil prices are posing a big challenge.
Transport Engineering rebounded for the first time in four months on stronger demand for rig building and oil-field & gas-field equipment.
According to a report by Maybank Kim Eng, the rebound lifted the Marine & Offshore Engineering output (Sep 2014: +11.2% YoY; Aug 2014: +9.2% YoY).
Maybank cautions however that the industry may be facing challenging time ahead if the current weakness in crude oil prices – which plunged in recent weeks (West Texas Intermediate Crude Oil Oct 2014: USD 85.6/bbl; Sep 2014: USD 93.2/bbl) – were to persist, in turn affecting oil & gas industry’s investment.