Analysts Expect OPEC+ Output-Cut Extension to Reflect Positively on PTT-PTTEP
Analysts Expect OPEC+ Output-Cut Extension to Reflect Positively on PTT-PTTEP as Brent Crude Rebounds to mid $64.
Oil prices are on a course of recovery in anticipation of OPEC+ extending its output cut for another month after a report that major producers could vote to continue their current output cuts.
As of 10:35 local time in Thailand on Thursday, WTI rose 0.24% to $61.43/bbl, while Brent Crude increased 0.27% to $64.24/bbl.
Earlier this week, Brent Crude dropped to mid $62 as the OPEC+ meeting drew near, raising concerns that the group might pump more output amid economic recovery from the vaccine rollout.
Meanwhile, the U.S. Energy Information Administration (EIA) reported a decline of inventory stock to 143 million barrels, the lowest since 2003.
Asia Plus Security (ASPS) the output-cut extension by the OPC+ would reflect positive sentiment to SET Index and the energy sector, which has 20% of total market cap, as well as the share price of PTT Public Company Limited (PTT) and PTT Exploration and Production Public Company Limited (PTTEP). ASPS recommended “BUY” at a target price of ฿48.50/share and ฿118.00/share, respectively.