Crude Oil Prices Rise, Energy Stocks Soar

Jakarta, CNBC Indonesia - Shares in the energy sector, particularly oil and gas, showed a positive trend in today’s trading. The majority of leading stocks in this sector managed to land in the green zone, in line with soaring global oil prices. This sentiment also provided a tailwind for a number of issuers on the domestic capital market. For example, PT Energi Mega Persada Tbk (ENRG) posted the highest gain of 4.40%, bringing its share price to Rp1,425 per share. Additionally, shares of PT AKR Corporindo Tbk (AKRA) recorded significant growth. The company, engaged in fuel distribution and logistics, strengthened by 4.06% to close at Rp1,410. At the same time, private oil and gas issuer PT Medco Energi Internasional Tbk (MEDC) also delivered positive results with a 3.25% increase, placing its share price at Rp1,270. Oil and gas services issuer PT Elnusa Tbk (ELSA) was also seen moving attractively, recording a 2.34% rise to Rp655 per share. Meanwhile, a different performance was shown by PT Perusahaan Gas Negara Tbk (PGAS). Unlike its sector peers which surged ahead, PGAS shares tended to move sideways and closed stagnant at Rp1,500, unchanged, although it had reached a high of Rp1,526 per share. The situation in the Strait of Hormuz is worsening, with reports of explosions on two oil tankers, declining ship traffic, and a spike in global oil prices past US$90 per barrel. At the same time, Kuwait reported that its water desalination facility was attacked for the second consecutive day. According to Reuters, the Kuwaiti government stated on Monday that one of its water desalination plants was again targeted in an attack that triggered a fire. The government described the incident as a direct attack on vital civilian infrastructure. The latest attack comes as concerns over the smooth flow of global energy supplies through the Strait of Hormuz continue to mount. Tensions in the strategic shipping lane have reignited after the United States and Iran resumed open confrontation, each accusing the other of repeatedly violating a ceasefire agreement. LSEG data shows that shipping activity through the Strait of Hormuz continues to decline. Four vessels transited the strait on Sunday, down from eight the previous day. However, since Friday, at least three tankers carrying petroleum products and one Very Large Crude Carrier (VLCC) have entered the Strait of Hormuz to load oil. The increasing risk to global energy distribution routes has helped drive world oil prices sharply higher. Oil prices rose about 2% on Monday to trade above US$90 per barrel.