Oil Price Reset Sparks Interest in Asian Refiners and Petrochemical Stocks

Oil markets have experienced a sharp reset due to Saudi Arabia's decision to cut official selling prices for Asian buyers, causing Brent crude to drop to around $80.

This shift is having a ripple effect on the region's big refiners and petrochemical stocks. Three Asian companies in particular are worth examining: Laxmi Organic Industries, Nan Ya Plastics, and Sichuan Em Technology.

Laxmi Organic Industries, an Indian company, generates around ₹31.2 billion in revenue from its chemical business segment. The company's earnings grew to ₹793.62 million in FY2025-26, with a strong Q1 FY2026-27. However, the stock trades on a rich earnings multiple and carries higher financial risk due to reliance on external borrowing.

Nan Ya Plastics, a Taiwanese chemicals company, produces plastics, petrochemicals, polyester fibers, electronic materials, and power equipment used in everyday goods. The company generates most of its revenue from electronic materials at about NT$152.8 billion. Nan Ya Plastics could be an interesting way to gain exposure to cheaper crude and feedstock costs.

Sichuan Em Technology, a Chinese chemicals company, produces high-performance films, resins, and insulation materials used in power grids, new energy vehicles, electronics, 5G communication, and consumer appliances. The company's earnings grew 71.2% over the past year, with analysts expecting strong growth to continue.