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Attack on Aramco Facility makes Energy stocks rise

KUALA LUMPUR (Sept 17): Due to the attack on the world’s biggest processing petroleum facility in Saudi Arabia over the weekend, the energy stocks on Bursa Malaysia rose this morning.

According to reports, West Texas Intermediate was down 82 cents, or 1.3%, at $62.08 a barrel, while Brent crude was dropped to 77 cents or 1.1% at $68.25 a barrel by 0051.

On Monday, the crude prices surged by nearly 20% due to Saturday’s attack, the biggest jump in almost 30 years, before closing around 15% higher.

Among the advancing energy stocks were Alam Maritim Resources Bhd, Bumi Armada Bhd, Barakah Offshore Petroleum Bhd, Carimin Petroleum Bhd, Coastal Contracts Bhd, Dayang Enterprise Holdings Bhd, Hengyuan Refining Company Bhd, Deleum Bhd, Dialog Group Bhd, Hibiscus Petroleum Bhd, Icon Offshore Bhd and KNM Group Bhd.

According to PublicInvest Research, it has maintained its “Overweight” rating on the oil and gas sector, aggravating the impact of the lower supply,  the cold war between the US and Iran has also amplified the threat of military action.  “Therefore, we believe bullish sentiment in the market is likely to persist in the near term, providing trading opportunities especially to the pure oil and gas player like Hibiscus,” it said.

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