War stokes rally in SGX's oil, commodity stocks

NEVER be ashamed to admit you were wrong.

In mid-January this year, Canadian investment bank RBC Capital Markets' analysts admitted they made the wrong call with their "under perform" rating on US oil giant Exxon Mobil. The house's change of heart to a "perform" was fuelled by a sharp rally in crude prices on the back of robust demand and tight market conditions, which in turn has led to renewed investor interest in energy stocks. It was a good call, albeit late, more so in hindsight.

Oil and gas stocks were already set for a roaring time as they entered 2022. Last year, crude prices averaged 73 per cent higher than 2020, the year the pandemic shock brought the commodity to its knees as demand was decimated by lockdowns and mobility curbs; from doom to boom, indeed.