Understanding the Market | Oil Stocks Continue to Rise, Multiple Factors Support International Oil Prices, Institutions Optimistic about Profit Center Upside of the Three Oil Giants

Oil stocks continue to rise. As of the time of publication, PetroChina rose by 4.34% to HKD 6.49, COSL rose by 3.9% to HKD 6.93, Sinopec Corp. rose by 3.78% to HKD 4.94, and CNOOC rose by 2.99% to HKD 20.35. On the news front, the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission have announced a number of heavyweight financial policies, boosting market expectations for Chinese oil demand and risk appetite in the capital markets. Major global economies have successively entered an interest rate cut cycle, to some extent alleviating the downside risks of oil prices. The geopolitical tensions in the Middle East have intensified between Israel and Hezbollah, providing strong support for oil prices under a broader regional conflict risk. Everbright Securities previously stated that from a dynamic perspective, amid oil price fluctuations, they remain optimistic about the long-term investment value of the "Three Oil Giants". With tensions in the Middle East, the tightening of oil supply and demand under OPEC+ leadership is expected, and the oil price in 2024 is seen to remain relatively high. The "Three Oil Giants" have shown strong performance resilience during oil price fluctuations, and their profit center is expected to further rise