KUALA LUMPUR, Dec. 11 (Xinhua) -- Malaysian state-owned oil and gas company Petronas said Tuesday that it expects market volatility to persist next year, and remains cautious on new capital projects.

"Greater market volatility is expected to persist in 2019. Petronas maintains its prudent view on the industry outlook and will respond with cautious optimism particularly on new capital projects," Samsudin Miskon, vice president of the group's procurement, said in an activity outlook report for the period 2019-2021.

Oil prices have been fluctuating this year, with Brent crude oil prices rising to 86 U.S. dollars per barrel in early October, from 67 U.S. dollars per barrel at the beginning of the year. However, the prices declined by 30 percent to 57 U.S. dollars in early December due to oversupplied market.

"Petronas remains prudent and will continue to adopt lower for longer approach until we are confident that the current uptrend is sustainable," it said while expecting oil prices to stay at 60 to 70 U.S. dollars per barrel moving forward.

Amid the market volatility, Petronas opined that collaboration is fundamental for the industry to shift forward.

As many of its key contracts are due for re-tendering in 2020-2021, the group also highlighted that it would be a good time for players to strategize on new technology offering and strategic partnership including manning and financial support.

An average of about 1.7 million barrels of oil equivalent per day is forecast by the group over the next five years.

The group is eyeing 50 projects over the period, which will include 20 greenfield projects, and 30 brownfield projects.