Major stocks in the refining and oil sectors extended gains on Thursday after OPEC+ agreed to steep oil production cuts overnight, in bid to curb supply in an already tight market.
As of 10.33 a.m.Thai time, the share price of PTT Exploration and Production Pcl. (SET: PTTEP) rose THB3.00/share, or 1.79%, to THB171.00/share, with a trading value of THB641 million.
The share price of PTT Pcl. (SET: PTT) rose THB0.50/share, or 1.45%, to THB35.00/share, with a trading value of THB498 million.
The share price of Thai Oil Pcl. (SET: TOP) rose THB0.75/share, or 1.44%, to THB53.00/share, with a trading value of THB320 million.
The share price of Esso (Thailand) Pcl. (SET: ESSO) rose THB0.70/share, or 5.19%, to THB14.20/share, with a trading value of THB155 million.
The share price of Star Petroleum Refining Pcl. (SET: SPRC) rose THB0.50/share, or 4.42%, to THB11.800/share, with a trading value of THB59 million.
The share price of Bangchak Corporation Pcl. (SET: BCP) rose THB1.00/share, or 3.31%, to THB31.25/share, with a trading value of THB43 million.
Oil prices in early Asian trade on Thursday rose slightly after OPEC+ reached an agreement to cut oil production by about 2 million barrels per day, further tightening the global crude supply.
The Organization of the Petroleum Exporting Countries and its allies known as OPEC+ agreed on Wednesday to a production cut of by 2 million barrels per day from November in an attempt to recover declining crude oil prices in the last few months.
In the first face-to-face meeting since 2020, the group of some of the world’s most powerful oil producers delivered a move that went against the U.S. pledge to lower the burden of global consumers by increasing output to make oil prices even lower.
Daol Securities forecasts that OPEC’s latest move will steadily push up global crude oil prices, with the price recovery starting in 4Q22. This year, Dubai crude oil could reach $105.0 per barrel.
The broker rates stocks in the refining and oil sectors as “Neutral,” favoring PTTEP (TP: THB200.0), SPRC (TP: THB14.0), and TOP (TP: THB66.0).