O&G counters advance as oil prices continue to climb

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KUALA LUMPUR (Sept 21): Oil and gas (O&G) stocks on Bursa Malaysia advanced today as oil prices continued to rise to reach their highest level in months.

The continued rise in oil prices came on expectations that OPEC and its partners were considering extending output cuts. The market was also buoyed by tensions between the US and Iran.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew said the rally in O&G counters was supported by the return of interest to the stocks and the industry itself.

"Oil prices have been climbing over the last week and are continuing to rise to above the US$50 mark from between US$47 and US$48 a year ago," he told theedgemarkets.com when contacted.

Pong said the continued rise in oil prices has helped to boost the confidence level of investors.

Among the O&G stocks that rose are Borneo Oil Bhd (up 0.5 sen or 5.26% to 10 sen), Dialog Group Bhd (up two sen or 1% to RM2.02) and Sapura Energy Bhd (up three sen or 1.83% to RM1.67).