Top oil-related stocks advanced on Tuesday as crude prices bounced back above US$70/bbl after Turkey halted pipeline exports of petroleum from Kurdistan in response to an arbitration ruling confirming Iraq’s approval was required for the exports.
As of 10.58 A.M. Bangkok time, the share price of PTT Exploration and Production Pcl. (SET: PTTEP) rose THB5.50/share, or 3.82% to THB149.50/share, with a trading value of THB809 million.
The share price of Thai Oil Pcl. (SET: TOP) rose THB1.25/share, or 2.40% to THB53.25/share, with a trading value of THB401 million.
The share price of Bangchak Corporation Pcl. (SET: BCP) rose THB1.00/share, or 3.20% to THB32.25/share, with a trading value of THB120 million.
The share price of PTT Global Chemical Pcl. (SET: PTTGC) rose THB0.50/share, or1.08% to THB46.75/share, with a trading value of THB105 million.
The share price of IRPC Pcl. (SET: IRPC) rose THB0.08/share, or 3.80% to THB2.68/share, with a trading value of THB82 million.
The share price of Star Petroleum Refining Pcl. (SET: SPRC) rose THB0.20/share, or 1.85% to THB11.00/share, with a trading value of THB59 million.
Oil futures increased to US$73/bbl following the legal dispute between Iraq and the semi-autonomous Kurdistan region, as well as Turkey, which resulted in the stoppage of 400,000 b/d oil exports from the Ceyhan terminal. Krungsri Securities says that as supply constraints grow, oil prices will rise, which would be beneficial for PTTEP, TOP, BCP, and PTTGC.
Krungsri recommended PTTEP (BUY with TP THB176) as a direct beneficiary of the US$3.55/bbl spike in crude price after Iraq trimmed crude exports by 400,000 b/d or 0.5% of global crude supply. Also, Krungsri favors TOP (BUY with TP THB64.25) due to gain from recovery in GRM to US$8/bbl from US$5 early this month. The gradual rise in crude price would also mitigate risk of stock loss.
According to Krungsri, PTTEP (BUY with TP THB176) stands to gain the most from the US$3.55/bbl increase in crude price that followed Iraq’s decision to reduce crude exports by 400,000 b/d, or 0.5% of global crude supply. Krungsri also prefers TOP (BUY with TP THB64.25) because of the profit made on account of the rise in GRM to US$8/bbl from US$5 at the beginning of the month. The gradual increase in crude price would reduce stock loss risk as well.
