It bounced back to US$40-50 per barrel, but sector outlook remains dim.
Having hit a low in Feb 2016, the Thomson Reuters Core Commodity Index (CRY) has erased most of the losses and is up about 3.5% by Nov 2016, notes OCBC Investment Research.
This trend was similarly seen for oil prices. Oil touched a low in February of about US$26 per barrel before recovering to hover between US$40-50 for the larger part of 2016.
The research house however notes that while prices have recovered from the low, the outlook for the local Oil & Gas (O&G) sector remains dim.
"Most are embroiled in trying to refinance their bonds and the industry looks in dire need of a strong helpline. With oil at current levels, we do not see any pick up in orders for a long while," it said.
According to OCBC Investment Research, the current restructuring will continue and weak players will likely be forced to exit the market, streamline their operations or seek alternative new businesses.
"It remains a tough environment and while the trough in oil price appears to be over, there are still no clear signs of a pick -up in orders for local oil and gas players," it said.
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