Hong Kong Stock Concept Tracking | Buffett continues to increase holdings in Occidental Petroleum for 9 consecutive days, oil prices are expected to remain strong as the peak season approaches (with concept stocks)

According to the Zhitong Finance and Economics APP, documents from the U.S. Securities and Exchange Commission show that Berkshire Hathaway, under Buffett's control, has been buying Occidental Petroleum shares for nine consecutive working days, currently holding a total of 255.3 million shares, about 29% of the shares, worth approximately $15.4 billion.

Buffett's increased holdings in Occidental Petroleum are not new. Buffett's investment in Occidental Petroleum began in 2019. Starting from the first quarter of 2022, Berkshire Hathaway under Buffett's control has made large purchases of Occidental Petroleum shares for three consecutive quarters, increasing its stake in Occidental Petroleum to 20.9%, becoming the largest single shareholder of Occidental Petroleum in one fell swoop.

In August 2022, Berkshire received approval from the U.S. Federal Energy Regulatory Commission to purchase up to 50% of Occidental Petroleum's shares. Subsequently, Buffett continued to increase his holdings.

Buffett has stated that the company is optimistic about Occidental Petroleum's large oil and natural gas assets in the United States, as well as its leading position in carbon capture. He believes that oil and gas production helps the United States reduce energy dependence, aligning with the interests of shareholders and the country.

In terms of oil prices, after a 2-month correction, international oil prices began to rebound on June 5th. On June 18th, WTI crude oil futures for July closed up $1.24, or 1.54%, at $81.57 per barrel.

On June 2nd, the OPEC+ meeting announced that the voluntary production cut measures of 1.65 million barrels per day announced in April 2023 will be extended until the end of 2025, and the voluntary production cut measures of 2.2 million barrels per day announced in November 2023 will be extended until the end of September 2024. The Saudi minister stated that if the market weakens, OPEC+ can pause or reverse crude oil production to boost oil prices.

In terms of demand, it is currently observed that the driving season in Europe and the United States is gradually approaching, leading to seasonal bullishness in crude oil demand. U.S. refinery operating rates remain at high levels, and tight supply of crude oil in the third quarter is expected to support oil prices.

Guosen Futures pointed out that OPEC maintains a relatively strong forecast for global oil demand growth in 2024, and Goldman Sachs also estimates robust U.S. fuel demand this summer, driving oil prices higher. The recent continuous increase in U.S. refinery operating rates reflects positive U.S. crude oil demand. Global geopolitical conflicts still pose significant uncertainties. From a technical perspective, there is limited downside for oil prices, and short-term volatility is biased towards strength. Minsheng Securities also stated that last week, U.S. gasoline and diesel futures and European and Singapore gasoline and diesel spot prices rose, with the characteristics of the peak season gradually emerging, and oil prices in the third quarter are expected to gradually rise with the support of improving supply and demand.

In the domestic market, the performance of oil stocks has been quite strong so far this year. According to Wind data, as of this year, CNOOC's stock price has risen by more than 45%, with its market value increasing from 374.4 billion yuan to 962.2 billion yuan; PetroChina's stock price has also risen by 38%, with its market value increasing from 1.24 trillion yuan to 1.72 trillion yuan; Sinopec's stock price has risen by 7.89%, with a latest market value of 690.3 billion yuan Since 2023, in the new round of oil price fluctuations, the net profit attributable to the parent company of PetroChina and CNOOC has significantly exceeded the trend line formed by historical net profit data, reflecting the resilience of PetroChina and CNOOC's performance.

Guotai Junan Securities pointed out that the tense geopolitical situation in the Middle East and the expected tightening of oil supply and demand under the leadership of OPEC+ are optimistic about maintaining high oil prices. During the period of oil price fluctuations, the "Three Oil Giants" have shown strong performance resilience, and the profit center is expected to further increase. Global upstream capital expenditures are expected to continue to rise, and the oilfield service market is expected to remain prosperous, with the oilfield services under the "Three Oil Giants" expected to benefit fully.

Related Concept Stocks:

CNOOC Limited (00883): The company is China's largest offshore oil and gas producer and one of the world's largest independent oil and gas exploration and production companies, with main businesses including exploration, development, production, and sales of crude oil and natural gas. In the first half of 2023, the net oil and gas production reached 331.8 million barrels of oil equivalent, an 8.9% year-on-year increase. The company achieved oil and gas sales revenue of RMB 151.69 billion, a 14.1% year-on-year decrease; net profit attributable to the parent company was RMB 63.76 billion, a decrease of 11.3%, much lower than the international oil prices during the same period.

PetroChina Company Limited (00857): The company is the largest oil and gas producer and seller in China's oil and gas industry, one of the largest companies in terms of sales revenue in China, and one of the world's largest oil companies. The company is committed to becoming a globally competitive international energy company and one of the important producers and sellers of petroleum and petrochemical products globally.

China Petroleum & Chemical Corporation (00386): The company's main business is in petroleum, natural gas, and chemical operations. The petroleum and natural gas business includes exploration, development, and production of crude oil and natural gas; pipeline transportation of crude oil and natural gas; refining crude oil into petroleum products; and marketing crude oil, natural gas, and petroleum products. It is a large oil and gas producer in China, ranking first in refining capacity in China, and has a complete network for the sale of petroleum products in China, making it the largest petroleum product supplier in China