Crude oil surged overnight and continued to grow high on Asia names on hope of OPEC cutting production to support oil price. Quite a few Asia names had increased more than 3% compare to previous close.
Energy names across Asia climbed with a short squeeze vibe, helping to pull most Asia markets into a positive territory today.
Woodside Petroleum +6%
Origin Energy +9.7%
JX Holding +3%
PTT PCL +4 %
PTT Explor and Prod Public +5.4%
Indeed the oil names have been hammered quite badly for the past 3 months. As you can see from the Short Interest graphs below some big names like 857 HK, 883 HK and WPL AT, their % of free float shares on loan have been at 2 year high for the past month. It would be interesting to see the heavily shorted energy sector in the process of playing catch up with the better sentiment.