Singapore’s oil and gas stocks soar as non-OPEC producers join output cut.
The global energy sector rallied after crude oil prices surged 5% last Friday, sending US equity indices to record highs again. This was largely due to the production cut agreement formed between OPEC and non-OPEC countries in a meeting over the weekend. Non-OPEC members agreed to reduce output by 558k barrels a day, which will help to offset an increase in US output next year.
Singapore’s oil and gas sector rebounded strongly from multi-month lows following oil’s rally. Keppel Corp, Sembcorp Ind and Sembcorp Marine rose over 3% this morning. Smaller offshore and marine companies including Ezion, Ezra and KrisEnergy surged over 6%. Their share prices have plunged more than 70% due to oil’s downturn. Any significant rebound in oil prices will likely attract buyers into the market, although the fundamentals haven’t changed yet.
Technically, WTI broke out from a strong resistance level at $52.3 (the 100% Fibonacci extension level) and traded higher at around $53.8 this morning. $52.3 will become its immediate support level. The next resistance level can be found at around the $56.0 area.
US dollar remains strong; keeps gold under pressure
Gold, silver and platinum prices have been hammered by a strong dollar and 'risk-on' sentiment, although the downward momentum has weakened as suggested by the MACD and Stochastics over the last few days. Gold is now trading at $1,156, with key support and resistance at $1,136 and $1,193 respectively. Silver prices remain range bound between $16.58 and $17.05. Platinum dipped to $914, with immediate support and resistance at $905 and $950 respectively.
WTI - Cash
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