Bursa O&G counters rise after oil prices climbed above US$80 a barrel

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KUALA LUMPUR (Sept 25): Bursa Malaysia oil & gas counters like Sapura Energy Bhd, Hibiscus Petroleum Bhd and Petron Malaysia Refining & Marketing Bhd rose today after world crude oil prices climbed overnight to breach US$80 a barrel.

At 10:37am today, Sapura Energy shares rose two sen to 45 sen, Hibiscus was up four sen at RM1.17 while Petron climbed 26 sen to RM8.46. 

Overnight, Reuters reported that global benchmark Brent crude jumped more than 3 percent on Monday to a four-year high above US$80 a barrel after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply. 

The Organization of the Petroleum Exporting Countries and non-OPEC states, including top producer Russia, gathered in Algiers on Sunday for a meeting that ended with no formal recommendation for any additional supply boost to counter falling supply from Iran. Brent crude settled up US$2.40 or 3.1 percent at US$81.20 a barrel, after touching an intraday high of US$81.39, the highest since November, 2014. U.S. light crude settled up US$1.30, or 1.8 percent, higher at US$72.08. 

"The market's still being driven by concerns about Iranian and Venezuelan supply," Gene McGillian, director of market research at Tradition Energy in Stamford was quoted as saying. "The failure of the producers to address that adequately this weekend is creating a buying opportunity."