Investors Shouldn't Chase Asian Oil, Gas Proxy Stocks Despite Mideast Conflict -- Market Talk

Dow Jones
03/05

0055 GMT - Investors shouldn't chase Asian stocks that serve as proxies to oil and gas despite rising prices amid the Middle East conflict, says DBS Group Research. Regional oil-and-gas stocks are among the best performing year to date, gaining around 20% even before the conflict erupted, the bank says. DBS expects relatively muted reactions from upstream oil-and-gas stocks, while refining companies' shares could see some downside, given the year-to-date rallies. Increasing oil prices are unlikely to translate into material earnings upgrades, unless disruptions meaningfully impair physical supply for an extended period. "Given that [the] current oil price rise is extremely volatile and uncertain, we would shy away from repricing oil names based on spot prices rather than longer-term prices," DBS adds. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

March 04, 2026 19:55 ET (00:55 GMT)

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