KUALA LUMPUR (Sept 11): Energy stocks were the largest losers on Bursa Malaysia, fallen all the way back to early this year, as Brent crude oil dipped below US$70 (RM303.15) a barrel on concerns of slowing economic growth.

Opec on Tuesday (Sept 10) cut its forecast for global oil demand growth in 2024, reflecting data received so far this year, and also trimmed its expectation for next year, marking the producer group’s second consecutive downward revision.

Brent is now below US$70 for the first time in more than two years. The futures curve also suggests that inventory conditions are becoming far less tight, as slowing consumption is met with expanding supplies.

The Bursa Malaysia Energy Index, which tracks 23 oil-and-gas-related companies which are mostly services providers, fell as much as 4% before reversing some losses to be down 2.84% at 835.18 as of 5pm on Wednesday.

The sector index has given up most of its gains year-to-date (YTD), and is now back to its January levels.

One market watcher has attributed the weigh on sentiment to the recent development between Petroleum Sarawak Bhd (Petros) and Petroliam Nasional Bhd (Petronas), that could hit on Petronas’ capital expenditure plan, given the uncertainty.

Based on its Wednesday’s closing price, oil producer Hibiscus Petroleum Bhd (KL:HIBISCS), which last traded at RM1.97, was now down 20.6% year-to-date and back to its December 2021 levels.

Some of the sharpest sold-down oil & gas, services and equipment (OGSE) players in recent days include Carimin Petroleum Bhd (KL:CARIMIN), which closed at 77.5 sen on Wednesday, its lowest since July 2023; and Uzma Bhd (KL:UZMA), which had fallen back to its January 2024 levels at 90 sen.

Dayang Enterprise Holdings Bhd (KL:DAYANG) had fallen back to its Feb 8 levels at RM2.08, and Perdana Petroleum Bhd (KL:PERDANA) was back to its early May levels at 30 sen.

Newly-listed high-flyer Keyfield International Bhd (KL:KEYFIELD) has given up four months’ worth of gain and was back to its May 15 levels at RM1.99. YTD, the stock is up 121%, compared to its peak gains of 209% on Aug 16 this year.