0428 GMT - Oil prices are likely to remain rangebound unless there is a revival in Chinese demand or a "meaningful bottleneck" in physical flows from Russia and the Middle East, says Phillip Nova's Priyanka Sachdeva in a note. Sentiment is largely driving markets but the effect of oil-related headlines is short-lived, she says. Crude briefly climbed on Iran's intensifying unrest and supply-risk news in Venezuela before correcting soon after, the analyst notes. Major forecasters and industry data note a growing supply surplus that will likely keep a lid on oil prices, she adds. Sanctions and headlines are therefore causing short-term volatility rather than real physical shortfalls, she says. Front-month WTI crude oil futures fall 0.15% to $59.10/bbl; Brent declines 0.2% to $63.64/bbl. (megan.cheah@wsj.com)
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Palm Oil Output Likely to Stay Healthy in 2026 -- Market Talk
0227 GMT - Palm oil output may remain healthy in 2026, even as global edible oil supply still looks tight, Kenanga IB analyst Khoo Teng Chuan says in a note. He keeps his 2026 average crude palm oil price forecast at 4,000 ringgit/ton, down from 4,380 ringgit/ton in 2025. While some cost pressures are likely, upstream margins should remain manageable, he says. Visibility in downstream operations could remain weak, but more meaningful contributions from nonplantation segments such as property and renewable energy are expected. Integrated plantation groups are increasingly focused on improving asset yields, he adds. Kenanga maintains a neutral rating on the Malaysian plantation sector, as limited growth and upside catalysts are offset by healthy profits, solid balance sheets and undemanding valuations. Kenanga names Kuala Lumpur Kepong, PPB Group and TSH Resources as top picks. (yingxian.wong@wsj.com)
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(END) Dow Jones Newswires
01-16-26 1019ET
