Lates News

Research institution CreditSights pointed out in their assessment of the impact of the Middle East conflict on US dollar bond issuers that a rise in oil prices may boost integrated and upstream-focused oil and gas producers in South and Southeast Asia. Companies such as the Indonesian national oil company, Malaysian national oil company, Thai national oil exploration and production company, Medco Energy, Saudi Aramco, and Qatar Energy may benefit from this; while downstream refining companies like Thai Oil and Siam Cement may face pressure from increasing raw material costs narrowing their profit margins. Saudi Aramco and Qatar Energy also face shipping risks as most of their exports need to pass through the Strait of Hormuz, although CreditSights notes that Saudi Aramco has greater flexibility in adjusting shipping routes. Additionally, airport operators like GMR face risks from reduced passenger traffic due to the Middle East region accounting for about one-third of India's air traffic. In other sectors, companies focusing on Dubai such as Emaar Properties face risks due to decreased human traffic and weakening investor confidence.