Middle East Tensions Send Asian Energy Stocks Soaring
Asian energy stocks rose sharply on Friday, tracking higher oil prices as tensions in the Middle East escalated. The price of crude oil held above $102 a barrel at 04:27 GMT, following a significant increase in the previous session. U.S. West Texas Intermediate was around $93.
The surge in oil prices was driven by concerns over fuel supplies, particularly after China announced it would halt most refined-fuel exports in October. This move added to supply worries, which were further fueled by a possible increase in U.S. military forces in the Gulf, including the potential deployment of another aircraft carrier.
South Korean energy stocks led the gains, with SK Innovation jumping 8.5% and S-Oil Corp surging 10%. Japanese energy stocks also rose, with Inpex Corp increasing by 2.3% and Eneos Holdings advancing 1%. Australian energy stocks gained as well, with Woodside Energy rising 1% and Santos climbing 2%.
Despite the gains in the energy sector, the broader regional equity market was weaker on Friday.