Quick Take: O&G counters rise as Middle East tensions drive crude surge
KUALA LUMPUR: Oil and gas-related counters continued to trend higher in early trade on Friday, defying the weaker broader market, amid growing concerns over escalating tensions in the Middle East.
US West Texas Intermediate (WTI) crude surged US$5.11, or 7.51%, to US$73.15, while Brent jumped US$4.99, or 7.19%, to US$74.35 per barrel.
The surge in oil prices was driven by geopolitical uncertainties, particularly tensions in the Middle East, which have raised fears of supply disruptions.
Reuters reported early on Friday that Israel had launched strikes on Iran, while Iranian media reported explosions heard in Tehran, as tensions intensified over U.S. efforts to secure Iran's agreement to halt the production of material for an atomic bomb.
As of 9.28 am, the Bursa Malaysia Energy Index rose 1.68%, or 12.20 points, to 738.33.
Among the gainers, refiners saw notable increases. Hengyuan Refining Company rose 16 sen to RM1.88, while Petron Malaysia Refining & Marketing gained 10 sen to RM3.84.
Other oil and gas counters also saw gains, with Hibiscus climbing seven sen to RM1.62, Dayang adding four sen to RM1.91, Dialog up four sen at RM1.55, and Deleum advancing three sen to RM1.48.
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