HILITE: Broker sees oil fall as Sentiment plus Anti Commodity

Thai Oil Public Company Limited stated that crude oil prices fell after investors feared a rate hike of the US Federal Reserve. Slowing down demand – crude oil prices drop After raising the policy rate of the US Federal Reserve (Fed) to reduce inflation due to rising energy costs. This caused investors to worry that the US economy was entering a recession. and pressure on the demand for oil in the market to slow down At the same time, the appreciation of the US dollar As a result, investors who hold other currencies are less interested in investing in crude oil -/+

US President Joe Biden has called on Congress to approve a suspension of gasoline tariffs. 18.4 cents per gallon temporarily for a period of 3 months to solve the problem of expensive gas. After the current average US retail oil prices increased to $5 per gallon. which has increased by more than 50 percent since the beginning of 2022

After the market close, the US Petroleum Institute (API) reported that US crude inventories for the week ending June 17, 65 rose by 5.6 million barrels, and gasoline inventories rose by 1.2 million barrels, while the volume of gasoline inventories rose by 1.2 million barrels. Diesel inventories fell 1.7 million barrels, gasoline prices diesel fuel price Dropped more than Dubai crude oil prices. After being pressured by Indian exports in July that tend to increase.

However, the market was boosted by the easing of epidemic control measures in China. Dropped more than Dubai crude oil prices. After the supply has increased in line with the refinery rate of regional refineries, while the demand for diesel is likely to continue to recover from improving economic activities following the opening of the country in many countries.

The price of West Texas Intermediate crude oil was 106.19 USD/barrel -4.46 USD, Brent 111.74 USD/barrel -2.91 USD, Dubai 106.42 USD/barrel -5.18 USD.

Singapore refined fuel prices: 95 octane gasoline at $155.09/barrel -5.65, kerosene and jet fuel $164.84/barrel -8.73 US dollars, high speed diesel (0.05% S) $169.96/barrel -7.26. US$, Fuel oil (3.5% S) US$92.43/barrel -5.00 US$

Kasikorn Securities stated in the analysis that Prices of many commodities fell sharply. and the trend is down Both the price of Brent oil, natural gas, aluminum, sugar, etc. (if counting from the last high of the year, oil fell 12.2%, natural gas fell 29%, aluminum dropped 37%) due to concerns. Demand side will slow down from (Recession) assessed as a positive sentiment towards anti-commodity stocks such as GPSC, BGRIM, PTG, SCGP, EPG, but negative for PTT, PTTEP, KSL shares.

DBS Securities Vickers stated that oil cuts impact on upstream energy stocks PTTEP, PTT, but shares benefit from Anti Commodity, including SCC, BGRIM, GPSC, SCGP, CBG, OSP, AAV, EPG.