{"id":322536,"date":"2023-04-05T00:53:07","date_gmt":"2023-04-04T16:53:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322536"},"modified":"2023-04-05T00:53:09","modified_gmt":"2023-04-04T16:53:09","slug":"opecs-oil-output-reduction-could-benefit-this-stock","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/opecs-oil-output-reduction-could-benefit-this-stock\/","title":{"rendered":"OPEC&#8217;s oil output reduction could benefit this stock"},"content":{"rendered":"\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>The Organization of the Petroleum Exporting Countrie (OPEC) recently announced a new cut in oil output amounting to 1.16 million barrels\/day. When taking into account prior cuts, this would take the total impact to 3.66 million barrels\/day, equivalent to 3.7% of global demand. <\/p>\n\n\n\n<p>While this could potentially put renewed pressure on inflation for both the US and the Philippines, we believe that the outlook on central bank rate hikes should remain unchanged given that this event factors into the supply-side of things, while central banks deal primarily with the demand-side of inflation. While rate cuts at this point would still be too premature given that inflation is still above desired levels, we note that there could be room for both the Fed and the BSP to pause on rate hikes in the next few months after the upcoming round of 25 bps (0.25%) rate hikes.<\/p>\n\n\n\n<p>We therefore expect the news on oil output reduction to have minimal repercussions on rate sensitive sectors in the PSE, such as telco and property. While higher oil prices could spell some fears regarding the USDPHP exchange rate, we also note that is likely to be soothed once the BSP\u2019s 0.25% rate hike on April 20 kicks in. <\/p>\n\n\n\n<p>This should therefore be beneficial to<strong> Petron Corp. (PCOR)<\/strong> as this would keep the costs of procuring oil more manageable, while the corresponding price increases are passed on to customers, thereby boosting margins. We note though that increased competition on the marketing end could pose some downside risks for the company. Technicals wise, we would recommend accumulating PCOR at P3.00 and below.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-322536","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/322536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=322536"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/322536\/revisions"}],"predecessor-version":[{"id":322538,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/322536\/revisions\/322538"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=322536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=322536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=322536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}