KGI Securities has kept its “buy” call on Rex International with a target price of 50 cents as geopolitical risks boost oil prices.
In a Feb 14 note, the brokerage noted that both Brent and West Texas Intermediate rose around 3% on Feb 11 to US$94.44 and US$93.10 respectively, closing at their highest levels since Sept 2014.
This follows a warning from a senior White House official about the possibility of Russia invading Ukraine “very soon”, the brokerage said. “Even without the prospect of war, oil supply challenges among exporting countries still threaten to increase the tightness in oil markets and may continue to push prices higher, according to the International Energy Agency,” it added.
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