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Energy Stocks Gain on Oil, Refining Margins High; Petrochemicals to Recover

Energy Stocks Gain on Oil, Refining Margins High; Petrochemicals to Recover

MGR Online•Economy•11h ago

Reader Briefing

Energy stocks are positively viewed by brokers due to rising crude oil prices, stable refining margins, and an expected recovery in petrochemicals during the high season.

  • •Thai brokers are optimistic about energy stocks, particularly in upstream and refinery sectors.
  • •Crude oil prices are rising due to geopolitical tensions in the Middle East, though economic concerns limit upside.
  • •Refining margins are strong, especially for gasoline, while petrochemical margins are mixed, with PVC showing signs of recovery.
  • •Specific stocks like PTTEP, TOP, SPRC, BCP, PTT, SCC, PTTGC, and IRPC are analyzed for their performance drivers.

Overview

  • •Brokers at DBS Vickers Securities are observing positive signals for energy stocks, especially in the upstream and refining sectors, compared to petrochemicals.
  • •Crude oil prices have seen a slight increase, driven by geopolitical tensions in the Middle East and tight physical differentials, though macroeconomic concerns are limiting further gains.
  • •The Henry Hub and European gas markets have stabilized after previous volatility, moving within narrow ranges as weather patterns normalize.
  • •Refining margins remain strong, led by gasoline, while jet fuel and diesel are showing signs of weakening.
  • •Singapore GRM has improved by 6% week-on-week, but a slight increase in crude premium has raised overall refining costs in Asia.
  • •In the petrochemical industry, Aromatics show greater strength than Polymers, where margins remain tight.
  • •PVC is slowly recovering due to the high season for the construction industry, and PET margins have seen a slight increase.
  • •PTTEP is expected to benefit from strong oil prices, while refinery stocks like TOP, SPRC, and BCP are supported by good distillate cracks, despite slightly higher crude premiums. PTT's upstream gains are offset by petrochemical weakness; SCC is neutral with PVC support but weak HDPE margins; PTTGC and IRPC face pressure from polymer margins.

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Key Entities

Organization

DBS Vickers Securities(บล.ดีบีเอส วิคเคอร์ส)
A brokerage firm providing analysis on the energy sector.
PTTEPℹ️
An energy company expected to benefit from strong oil prices.
TOPℹ️
A refinery company that is expected to benefit from distillate cracks.
SPRCℹ️
A refinery company that is expected to benefit from distillate cracks.
BCPℹ️
A refinery company that is expected to benefit from distillate cracks.
PTTℹ️
An energy company with upstream gains offset by petrochemical weakness.
SCCℹ️
A company with neutral performance, supported by PVC but weakened by HDPE margins.
PTTGCℹ️
A petrochemical company facing pressure from polymer margins.
IRPCℹ️
A petrochemical company facing pressure from polymer margins.