O&G stocks retreat as crude oil prices extend losses

O&G stocks retreat as crude oil prices extend losses
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KUALA LUMPUR (Nov 15): Shares in oil and gas (O&G)-linked stocks declined in the morning trades on Tuesday (Nov 15) as oil prices extended losses in early Asian trade on Tuesday after the Organization of the Petroleum Exporting Countries (OPEC) cut its 2022 global demand forecast, while rising Covid-19 case numbers in China clouded the outlook for fuel consumption in the world's top crude importing nation.

At 9.40am, Uzma Bhd fell 2.53% or one sen to 38.5 sen, Bumi Armada Bhd lost 2.3% or one sen to 42.5 sen, and Hibiscus Petroleum Bhd dipped 1.94% or two sen to RM1.01.

Meanwhile, Hengyuan Refining Company Bhd was down 1.34% or six sen to RM4.42, Dialog Group Bhd shed 0.48% or one sen to RM2.07, Yinson Holdings Bhd was down 0.87% or two sen to RM2.27 while Carimin Petroleum Bhd dropped 1.83% or one sen to 53.5 sen.

Reuters said Brent crude futures fell 39 cents, or 0.4%, to US$92.75 a barrel by 0133 GMT after settling down 3% on Monday. US West Texas Intermediate crude was at US$85.31 a barrel, down 56 cents, or 0.7%, after tumbling 3.5% in the previous session.

OPEC cut its 2022 global oil demand growth forecast for a fifth time since April, citing mounting economic challenges including high inflation and rising interest rates, it said.

In a daily market report on Tuesday, Rakuten Trade said concerns on global demand from OPEC saw the Brent crude dipped to below the US$93 per barrel, thus the energy sector may experience some headwinds on Tuesday.