PTT-PTTEP Soar despite Market Tumble as Oil Hits US$130 per Barrel

PTT and PTTEP soared amid a market decline of over 30 points on early Monday trading after oil prices hit USD130 on a delay in Iranian nuclear talks fueling tight supply from Russia sanctions.

Oil prices rose significantly to a 14-year high on Monday morning amid concerns of tight supply in both oil and natural gas from the sanctions on Russia.

In the early morning of Asian trading session, the international benchmark Brent crude rose 10.14% to USD130.09 per barrel, a level not seen since 2008. Meanwhile, West Texas Intermediate rose 9.42% to $126.58 a barrel.


PTT Exploration and Production Plc. (SET: PTTEP) started the week with a 5% gain in share price at the opening bell. The share price surged THB7.50/share or 4.98% to trade at THB158.00/share. 

Meanwhile, PTT Plc. (SET: PTT) surged THB1.00/share or 2.60% to THB39.50/share at the opening.


According to Krungsri Securities, the SET is likely to extend losses today and challenge the 1,655 – 1,660 support level. This would be prompted by the unsolved Russia-Ukraine conflict, with the US and EU allies threatening to ban Russian oil imports. However, a spike in oil prices above USD120/bbl would strengthen energy counters and potentially trigger an intraday rebound.Therefore, it recommends PTTEP (BUY/TP THB156.00), claiming a direct beneficiary of WTI futures trading at a 13-year high of USD125/bbl.

Reports that Russia has suspended gas delivery to the EU and delays in Iran nuclear deal lifted sentiment towards oil plays, especially PTTEP which applies an oil linked pricing formula.