Oil refining margins went negative yesterday, falling to about $-1.64 a barrel, prompting investors to sell shares in refining firms on Friday on fears of a global recession.
The share price of Star Petroleum Refining Pcl. (SET: SPRC) dropped THB0.60/share, or 5.08%, to THB11.20/share at early Friday trading, with a trading value of THB236 million.
The share price of Esso (Thailand) Pcl. (SET: ESSO) dropped THB0.40/share, or 2.94%, to THB13.20/share, with a trading value of THB188 million.
The share price of Thai Oil Pcl. (SET: TOP) dropped THB1.50/share, or 2.68%, to THB54.50/share, with a trading value of THB395 million.
The share price of Bangchak Corporation Pcl. (SET: BCP) dropped THB0.75/share, or 2.33%, to THB31.50/share, with a trading value of THB43 million.
The share price of IRPC Pcl. (SET: IRPC) dropped THB0.06/share, or 1.83%, to THB3.22/share, with a trading value of THB108 million.
According to UOBKayHian Securities, losses in the refining stock sector today were driven by oil refining margins turning negative yesterday, falling to -$1.64 a barrel after hitting a new high earlier, on global recession fears, and production capacity is expected to return to normalcy in 3Q22, likely leading to a reduction in refining businesses’ profit.
The Asian benchmark, Singapore gross refining margins, fell to -$1.62 per barrel at 10:58 am Thai time.
