JAKARTA – The decline in global oil prices could pose a negative sentiment for several oil and gas (O&G) issuers, according to analysts.

On Wednesday (5/3), West Texas Intermediate (WTI) crude oil prices for April 2025 futures dropped by 3% to USD 66.21 per barrel, marking the lowest level since mid-November 2024. During intraday trading, WTI briefly hit USD 65.22 per barrel, the lowest since May 2023.

The price drop followed the release of data showing a 3.6-million-barrel increase in U.S. crude oil inventory, reaching 433.8 million barrels by the end of February 2025. Additionally, OPEC+ will continue its oil production recovery plan in April 2025.

Hendriko Gani, Investment Analyst at Stockbit Sekuritas, noted that this decline could generate short-term negative sentiment for oil and gas producers and service providers like MEDC, ENRG, WINS, ELSA, and LEAD.

PT Medco Energi Internasional Tbk (MEDC) and PT Energi Mega Persada Tbk (ENRG) are the largest oil exploration companies in Indonesia, while PT Wintermar Offshore Marine Tbk (WINS), PT Elnusa Tbk (ELSA), and PT Logindo Samudramakmur Tbk (LEAD) are involved in oil and gas support services.

Among these issuers, ENRG recorded a net profit margin of 14.81% in Q3 2024, higher than MEDC's 10.68%.

WINS reported a net profit margin of 25.98% for the same period, while LEAD achieved 20.46%, and ELSA only 3.25%. (KR/ZH)