O&G stocks in favour today buoyed by continued climb in crude prices

O&G stocks in favour today buoyed by continued climb in crude prices
-A +A

KUALA LUMPUR (Aug 17): Several smaller oil and gas (O&G) counters rose during the morning trading session today amid news of China’s plans to ship in large volumes of US crude in August and September.

At 11.11am, Sapura Energy Bhd had gained 1.5 sen or 13.04% to 13 sen, giving it a market capitalisation of RM2.08 billion. The counter saw a total of 197.99 million shares traded, exceeding its 200-day average trading volume of 135.42 million shares.

Velesto Energy Bhd rose one sen or 6.9% to 15.5 sen, with a market value of RM1.27 billion.

KNM Group Bhd was one sen or 4.6% higher at 23 sen, giving it a market capitalisation of RM625.65 million.

At the time of writing, Brent crude futures were trading at US45.13 (RM188.97) per barrel, up 0.74%.

Reuters reported that Chinese state-owned oil firms had booked tankers to transport at least 20 million barrels of US crude in August and September as China ramped up energy and farm purchases ahead of a review of the trade deal.

It said this had outweighed concerns over a slowdown in demand recovery after the coronavirus pandemic and an uptick in supplies.