TASCO Shares Rise on Venezuela's OPEC Exit and Normalization of Oil Supply
The share price of Tipco Asphalt Public Company Limited (SET: TASCO) rose by 1.19% or THB 0.20 to THB 17.00 on Friday at 11:31 AM Bangkok time, with a trading value of THB 201.86 million.
Venezuela's exit from OPEC is seen as a positive development that signals changes in the organization's role in controlling global oil prices. The move is also expected to reduce policy and sanction risks associated with Venezuelan oil, which would benefit TASCO by supporting the normalization of Venezuelan oil supply in its operations.
TASCO has resumed purchasing oil from Venezuela for the first time in six years, with an initial delivery of 600,000 barrels in late July under a spot contract. This arrangement is deemed normal at this early stage of renewed engagement and is expected to enhance opportunities for increased supply over the longer term.
Venezuelan crude offers a higher production yield, around 70%, compared to 50-60% from other sources, which could improve profit margins. However, the upside may not be as pronounced as in previous cycles due to a reduction in bargaining power, as demand for Venezuelan oil has risen.