KUALA LUMPUR (April 15): Bursa Malaysia-listed energy stocks, which initially seemed to be rallying for the third straight day as the Energy Index made another attempt at charting a fresh three-year high as analysts flagged higher crude oil prices amid an escalation in the Middle East crisis, closed mix on Monday.

Before the noon break, the Energy Index, which tracks 22 oil and gas stocks, was the only sectoral index in the green, as it rose as much as 1.7%.

The index, however, dipped into the red later in the day to close 0.27% lower. Nevertheless, it outperformed the country’s benchmark index FBM KLCI, which slipped 0.55%.

Dialog Group Bhd, the largest energy stock by market capitalisation, which was up 1.3% to RM2.35 in the morning trade, finished 0.86% lower at RM2.30 a share.

Oil prices could add another US$5 per barrel in risk premium, and increase to as high as US$95 per barrel following tensions in the Middle East, Moody’s Analytics said in a note on Sunday. A US$10 per barrel risk premium could fade over “the next few weeks” with “measured and restrained” response from Israel, the research house noted.

Brent, the global benchmark for crude oil, has climbed to US$90 per barrel as Iran launched retaliatory strikes on Israel over the weekend. Israel had on April 1 launched an airstrike on the Iranian consulate in Syria, which killed several military officers and some civilians.

However, an escalation in the conflict that sees Israel forcefully responding to Iran’s counter-attack could result in oil prices jumping to more than US$100 per barrel, Moody’s Analytics warned.

Indonesia, South Korea, Singapore, Vietnam and Malaysia are under pressure from inflation, and “adding in an oil price shock would exacerbate these challenges severalfold”, the house said.

“Although Malaysia and Brunei could get a revenue boost as oil prices rise, much of this could get washed away by weaker global demand, as resurgent inflation globally sends households back into hiding,” it added.

Oil producer Hibiscus Petroleum Bhd, which was up eight sen or 2.86% to a one-year high of RM2.88 in early trades, settled 1.43% lower at RM2.76.

Hengyuan Refining Company Bhd, which manufactures petroleum products and gained as much as seven sen or 2.24% to RM3.19 in the morning, closed at RM3.18 — still up six sen or 1.92%.

Services firm Carimin Petroleum Bhd, which was up over 6% at 91.5 sen earlier in the day, finished at 88 sen, still up two sen or 2.33%.