Listen to this story
Shares in oil refineries listed on the Stock Exchange of Thailand (SET) rose on Monday as Saudi Arabia announced a cut in oil prices for the month of June for clients in Asia and Europe.
Amid a border market dive caused by fears of the Federal Reserve’s rate hike, Sea Oil Plc (SEAOIL) rose by 7 per cent from its prior closing during the morning session. Star Petroleum Refining Plc (SPRC) jumped by 4.5 per cent.
Thai Oil Plc (TOP) and Esso (Thailand) Plc (ESSO) also shared a rise of 2.6 per cent.
On May 8, state-controlled oil producer Saudi Aramco said it will lower the price of its Arab Light crude grade for buyers in Asia and Europe in June, while keeping the price in the United States unchanged.
The selling price of Arab Light crude for next month’s shipments to Asia will be cut to US$4.40 a barrel, from US$9.35 in May.
Analysts at KGI Securities said the cut of almost US$5 a barrel is likely to push the sentiment on the refinery players.
“We keep Star Petroleum Refining (SPRC), ESSO Thailand (ESSO), and Thai Oil (TOP) as our Energy top picks,” said analyst Kaweewit Thawilwithayanon.
This marks the first time in four month that the world’s largest oil exporter cuts its oil prices in light of Russia’s invasion of Ukraine that sent the global energy market into a tailspin.
The SET index tumbled by 22 points during the morning session, a 1.39 per cent decline from a previous trading day.