KUALA LUMPUR: Shares of refiners Hengyuan Refining Company Bhd
and Petron Malaysia Refining & Marketing Bhd climbed on Friday, driven by increased buying interest due to rising crude oil prices amid escalating tensions in the Middle East.
The Bursa Malaysia Energy Index surged 3.45% or 29.63 points to 887.44 at 11.26 am.
Hengyuan had surged 36 sen, or 15.32% to RM2.69 while Petron added 13 sen, or 2.9% to RM4.61 at 11.15 am.
Dayang gained 15 sen to RM2.38, Hibiscus Petroleum rose 11 sen to RM2.30, Bumi Armada added 2.5 sen to 50.5 sen and Alam Maritim climbed one sen to 3.5 sen.
“Oil prices skyrocketed, while stock markets stumbled as investors scrambled for cover amid the brewing chaos in the Middle East. Brent crude has taken off, with traders bracing for a potential weekend explosion—literally and figuratively,” SPI Asset Management managing partner Stephen Innes said.
He noted that Brent crude soared more than 5% on Thursday, notching its biggest single-day rise in over a year.
“If oil holds steady through Friday, it’s on track for its most significant weekly rise since January last year. While it’s true that oil’s surge is from a relatively low base, the impact is real. Global investors are sweating, and if the geopolitical tension keeps bubbling, the inflation outlook could get a nasty wake-up call,” he said.
Reuters reported that oil prices headed for their sharpest weekly gain in more than a year, as escalating tensions in the Middle East kept markets on edge.
Brent crude futures were up 9 cents, or 0.12%, to US$77.71 a barrel as of 0010 GMT. U.S. West Texas Intermediate crude futures were up 8 cents, or 0.11%, to US$73.79 a barrel.
Both benchmarks were on track for weekly gains of about 8%.
