Hibiscus Petroleum, PetGas shares surge as oil prices rally with Iran sanctions looming

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KUALA LUMPUR (Sept 24): Shares of Hibiscus Petroleum Bhd and Petronas Gas Bhd (PetGas) rose today as crude oil prices advanced with the deadline for US sanctions on Iranian oil drawing nearer.

At 4.10pm, Hibiscus Petroleum was up five sen or 4.67% at RM1.12 while PetGas was up six sen or 0.32% at RM19.06.

Hibiscus Petroleum was also the most actively traded stock on Bursa Malaysia with 82.22 million shares traded.

Reuters reported that oil prices rose about 2% today as markets tightened ahead of Washington's new sanctions against Iran, with some traders forecasting a spike in crude to US$100 per barrel.

Brent crude futures jumped to the highest level since May at US$80.43 per barrel, up US$1.57 or 2%.

US West Texas Intermediate (WTI) crude futures, meanwhile, rose US$1.28 or 1.8% to US$72.06 a barrel.

J.P. Morgan said in its latest market outlook published last Friday that "a spike to US$90 per barrel is likely" for oil prices in the coming months due to the Iran sanctions.

The bank said it expects Brent and WTI to average US$85 and US$76 per barrel, respectively, over the next six months.