Energy stocks posted small gains on Wednesday after WTI and Brent reached their high since late November.
As of 11.38 local time in Thailand, the share price of Thai Oil Public Company Limited (SET: TOP) rose THB1.00/share or 1.92% to THB53.00/share, with a trading value of THB297 million.
The share price of PTT Exploration and Production Public Company Limited (SET: PTTEP) rose THB1.00/share or 0.81% to THB124.50/share, with a trading value of THB1,467 million.
The share price of PTT Public Company Limited (SET: PTT) rose THB0.25/share or 0.64% to THB39.25/share, with a trading value of THB778 million.
Oil prices extended gains from the previous session after U.S. Federal Reserves signaled interest rates hike should come in earlier than expected, which is expected to support the price of oil.
WTI and Brent reached their high since late November. On Wednesday, WTI reached US$81.26 inching up by 0.04% while Brent reached US$83.62 inching down by 0.83%.
Asia Wealth Securities (AWS) recommends Oil Play stocks, choosing PTT, PTTEP, TOP and SPRC as the top picks. AWS stated that crude oil prices responded positively to the statement of the Fed chairman to the U.S. Senate Banking Committee which reflected the overall picture of the U.S. economy that is still strong, causing the crude oil market to recover although the increase in crude oil prices increases the weight of the risk of inflation.
The fundamentals of crude prices were also driven by seasonal demand and lower supply as Libyan oil production dropped to just 729,000 barrels per day (formerly 1.3 million barrels per day) due to the closure of several oil wells, including the closure of oil pipeline maintenance.
AWS believes that crude oil prices in Jan to early Feb will remain high before declining due to the end of seasonal demand and increasing supply from OPEC+ capacity increase plans.
