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Hot stock: Oil and gas, offshore and marine stocks rise on Wednesday
SINGAPORE-listed oil and gas, as well as offshore and marine stocks were trading up after crude prices and US energy shares climbed on Tuesday following reports of Middle-East tensions and the American Petroleum Institute's (API) report that reflected a 2.74 million barrel drawdown in crude inventories.
As at 10.17am, Sembcorp Marine shares were trading S$0.04 or 1.9 per cent up at S$2.12, and as at 10am, Keppel Corp shares were S$0.03 or 0.4 per cent up at S$7.8.
Meanwhile, Marco Polo Marine shares were S$0.001 or 2.6 per cent higher at S$0.04, Kimheng Offshore & Marine was S$0.003 or 3.2 per cent higher at S$0.097, and Golden Energy was S$0.01 or 2.3 per cent up to S$0.385.
These three stocks were also among the bourse's top 20 gainers on the day.
However, Vallianz shares traded S$0.001 or 7.1 per cent down to S$0.013.
The API report noted that the 2.74 million barrels drawdown was five million barrels off from analysts expectations.
"That's a vast delta and should support a short-term bid on dip mentality despite the longer-term bearish implication of rising US shale production," Oanda's head of trading Stephen Innes said.
"However, traders are looking over their shoulder at the worrying signs from the industrial commodity complex which is plunging on a waning global growth narrative, something that certainly doesn't bode well for oil producers either," he added.