Understanding the Market | Oil Stocks Extend Gains in the Afternoon, Three Major Oil Companies Continue to Strengthen Reserves and Production, Institutions Claim Long-term Investment Value Becomes Prominent
Oil stocks expanded their gains in the afternoon, with PetroChina rising 4.92%, CNOOC up 2.26%, China Oilfield Services increasing 1.95%, and Sinopec up 1.49%. Morgan Stanley pointed out that there are significant discrepancies in OPEC's crude oil production estimates, and the actual effects of the production increase plans are limited. Global oil demand remains strong, and it is expected that the market will rebalance in the second half of 2027, with Brent crude likely to rebound to $65 per barrel. Everbright Securities believes that in an environment of increasing uncertainty, the "three oil giants" will continue to increase reserves and production, highlighting their long-term investment value
According to Zhitong Finance APP, oil stocks saw an expanded increase in the afternoon. As of the time of publication, PetroChina (00857) rose 4.92% to HKD 7.68; CNOOC (00883) rose 2.26% to HKD 19.03; China Oilfield Services (02883) rose 1.95% to HKD 6.79; Sinopec (00386) rose 1.49% to HKD 4.1.
In terms of news, Morgan Stanley's latest research report pointed out that major data providers have shown unprecedented large discrepancies in their estimates of OPEC's crude oil production, with a gap of up to 2.5 million barrels per day. The bank noted that OPEC's production increase plan is essentially "more name than substance," with actual idle capacity far lower than expected, and global oil demand is stronger than commonly perceived. The oil market may rebalance in the second half of 2027, at which point Brent crude oil is expected to rebound to USD 65 per barrel.
Everbright Securities released a research report stating that against the backdrop of increasing uncertainty in the external environment and significant fluctuations in oil prices, the "three major oil companies" will continue to strengthen their reserves and production. The planned growth in oil and gas equivalent production for China National Petroleum Corporation, Sinopec, and CNOOC over the next 25 years is expected to be 1.6%, 1.5%, and 5.9%, respectively. Through continuous incremental cost reduction efforts, the "three major oil companies" are expected to achieve long-term growth that transcends the oil price cycle, highlighting their long-term investment value
