Oil prices were having a great week as the economy started to recover in the U.S. despite the Covid-19 Delta variant outbreak stateside that caused daily new cases to surge over the 7-day average of 156,000.
Last week, crude oil prices recovered from an earlier plummet and rose more than 11% in total on the weakening Dollar Index, resulting in crude oil contracts that use US dollars for trading being more attractive.
Meanwhile, the Energy Information Administration (EIA) stated that the U.S. crude stockpile fell 2.98 million barrels, compared with analysts expectations for a drop of 2.68 million barrels. Crude stocks at Cushing, Oklahoma, rose by 70,000 barrels.
The U.S. government data also showed that fuel demand climbed to the highest since the start of the COVID-19 pandemic, showing signs of economic recovery.
OPEC and its allies, known as OPEC+, are scheduled to meet on September 1, 2021, to discuss their production plans. The market expected the group to press on with a production increase by adding 400,000 barrels per day to the market each month from August through December.
The coming of Hurricane Ida also gave oil prices a boost over the weekend as oil firms on Saturday cut nearly 91% of U.S. Gulf of Mexico crude oil production, approximately 1.65 million barrels for safety measures.
The deadly hurricane is ravaging Louisiana on the 16th anniversary of Hurricane Katrina. The town of Jean Lafitte has been totally devastated by the hurricane, resulting in stranded residents as rescuers are unable to reach due to roadblocks and destroyed bridges.
Asia Wealth Securities (AWS) stated that the U.S. is currently in the Hurricane season, recently Hurricane Ida which is a level 4 hurricane moving in the Gulf of Mexico and there is a route to land in Louisiana at the beginning of the week.
More than 279 production rigs for gas and crude oil production in the Gulf of Mexico had to cease operations. As a result, gas and crude oil production, which accounted for 91% and 85% in the Gulf of Mexico, had to stop production. Currently, the Gulf of Mexico has crude oil rigs operating, accounting for 17% of U.S. oil production, while the refinery distillation along the Gulf of Mexico coast accounts for 45% of total U.S. refining capacity.
AWS noted that the hurricane season will affect more than one-fifth of U.S. petroleum production, which will support Oil Play. The securities company chose PTTEP, PTT, TOP, SPRC, and PTTGC.
The share price of PTT Public Company Limited (PTT) closed the morning session at ฿38.75/share, increased ฿1.00/share or 2.65%.
PTT Exploration and Production Public Company Limited (PTTEP) rose ฿5.50/share or 5.07% to ฿114.00/share.
PTT Global Chemical Public Company Limited (PTTGC) rose ฿2.00/share or 2.23% to ฿64.00/share.
Thai Oil Public Company Limited (TOP) rose ฿2.25/share or 4.69% to ฿50.25/share.
Star Petroleum Refining Public Company Limited (SPRC) rose ฿0.35/share or 4.07% to ฿8.95/share.
SET Index closed the morning session at 1,633.84 points, increased 22.64 points or 1.41% with a tradintg value of 69.5 billion baht.