Thailand’s top energy stocks saw a price surge on Monday after OPEC+ announced a surprise production cut.
As of 11.35 A.M. Bangkok time, the share price of PTT Exploration and Production Pcl. (SET: PTTEP) rose THB7.00/share, or 4.65%, to THB157.50/share, with a trading value of THB1,573 million.
The share price of Bangchak Corporation Pcl. (SET: BCP) rose THB1.50/share, or 4.84%, to THB32.50/share, with a trading value of THB249 million.
The share price of Thai Oil Pcl. (SET: TOP) rose THB1.75/share, or 3.33%, to THB54.25/share, with a trading value of THB373 million.
THe share price of Star Petroleum Refining Pcl. (SET: SPRC) rose THB0.30/share, or 2.78%, to THB11.10/share, with a trading value of THB134 million.
On Sunday, Saudi Arabia and other OPEC+ oil producers unexpectedly announced cuts in oil supply of roughly 1.16 million barrels per day, a move that analysts predicted would immediately drive up prices and that the United States deemed unwise.
According to a Reuters calculation, the combined amount of these pledges brings the total volume of cutbacks by OPEC+, including Russia, to 3.66 million bpd, or 3.7% of global demand.
Last month, oil prices hit a 15-month low at $70 per barrel on worries that the global banking crisis would dampen consumer demand. But, as crude rebounded towards $80, it was not believed that OPEC+ would take any additional measures to support the market.
The chairman of investment firm Pickering Energy Partners said on Sunday that the recent cuts may increase oil prices by $10 per barrel, while oil trader PVM said it expected a surge once trading resumed after the weekend.
Following the OPEC+ latest action, Goldman Sachs analysts lowered their OPEC+ production prediction for the end of 2023 by 1.1 million bpd and lifted their Brent price forecasts to $95 and $100 per barrel in 2023 and 2024, respectively. Goldman anticipated a 7% increase in oil prices as a result of the production cut, which would increase oil income for Saudi Arabia and OPEC+.
