The analyst at Dao Securities (Thailand) Public Company Limited maintains an "equal to market" investment weighting for the energy sector, believing oil prices will remain strong in the fourth quarter of 2026, supported by renewed geopolitical risks from the war in the Middle East as well as the intensifying war between Russia and Ukraine. For the overall oil market picture in 2026, the brokerage believes the market will be tight and see short-term supply shortages from the impact of the war and reduced maritime transport from the Middle East. Crude oil prices are expected to be supported by recovering Chinese import volumes and historically low U.S. strategic petroleum reserves. Meanwhile, market refining margins and base refining margins have likely already passed their peak for the year, and marketing margins will recover gradually but may still see pressure from increasingly negative fuel fund positions. The energy sector index rose 20% and outperformed the SET by 5% over the past six months, in line with the trend of higher crude oil prices. The brokerage selects PTTEP (buy/target 180.00 baht) as its top pick in the energy sector, believing PTTEP's overall earnings will be supported by average selling prices holding at high levels.
PTT Exploration and Production Public Company LimitedDao Securities names PTTEP its top pick with a buy rating and 180.00 baht target, citing high average selling prices supporting earnings.
