KUALA LUMPUR (Sept 23): Heightened oil-output risk in the Middle East following the recent attack on Saudi Arabian oil facilities and seasonally higher winter demand prompt TA Securities to upgrade its 2019 Brent crude-oil price assumption to US$65-US$75 a barrel from US$60-US$70 previously. 

The broker believes that upside risk to oil prices will continue to spur oil-and-gas capital expenditure spending outside of the Middle East. This will benefit upstream oil-and-gas contractors, which have already shown signs of earnings recovery, TA says. 

It maintains its overweight stance on Malaysia's oil oil-and-gas sector with buy ratings on the likes of Velesto and Petronas Chemicals.