O&M stocks appear to be decoupling from oil prices

Singapore

PRICES of Singapore's oil-linked stocks may well be decoupling from oil prices.

Recent market reactions suggest business fundamentals may have gained in importance over oil price sentiments in shaping share prices in the offshore and marine sector, observers said.

The correlation between stocks and oil prices has visibly weakened since the start of 2018. One telling sign was: neither Brent soaring past US$80, nor the threat of the Iran nuclear deal being dismantled, pushed stock prices to new highs this year.

KGI's analyst, Joel Ng, pointed out that instead, the year…