Energy stocks fall as crude oil prices slip

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KUALA LUMPUR (Dec 18): Stocks in the energy sector fell as crude oil prices slipped this morning.

At 10.32am, the energy index on Bursa Malaysia fell 2.44% or 20.59 points to 822.23.

Among the energy sector stocks that fell were Carimin Petroleum Bhd, Daya Materials Bhd, Dayang Enterprise Holdings Bhd, Deleum Bhd, Dialog Group Bhd, Handal Resources Bhd, Hengyuan Refining Company Bhd, Hibiscus Petroleum Bhd, Sino Hua-An International Bhd, Perdana Petroleum Bhd, Velesto Energy Bhd, Uzma Bhd and Wah Seong Corp Bhd.

US oil prices fell 1% on Tuesday after slipping below US$50 (RM208.88) a barrel in the previous session, with reports of a big climb in US inventories and forecasts of record shale output stoking worries about oversupply, according to Reuters.

Concerns around future oil demand amid weakening global economic growth and doubts on the impact of planned Organization of the Petroleum Exporting Countries (OPEC)-led production cuts were also hurting prices, traders said.

US West Texas Intermediate crude futures were at US$49.35 per barrel at 0035 GMT, down 1.06%, or 53 US cents, from their last settlement, said Reuters.

US crude prices have tumbled more than 35% since early October and are currently at levels not seen since October 2017.