HK Stock Market Move | Three major oil companies collectively rise, US hurricanes support oil prices, and oil-producing countries continue to demand higher oil prices.

The three major oil companies collectively rose. As of the time of writing, CNOOC (00857) rose by 2.48% to HK$5.78; PetroChina (00883) rose by 2.39% to HK$18.86; Sinopec (00386) rose by 2.28% to HK$4.49. On the news front, oil prices were supported as hurricane "Franklin" disrupted some offshore oil production activities in the Gulf of Mexico. International oil prices rose across the board on Monday, with the October delivery of WTI crude oil on the New York Mercantile Exchange up $1.44 to $70.09 per barrel, an increase of 2.1%. Brent crude oil futures for November closed up $1.14 at $72.75 per barrel, an increase of over 1.59%. EB SECURITIES believes that concerns about demand from major oil-consuming countries since 2024Q3 have weighed on market sentiment, but geopolitical tensions and minor supply disruptions have continued to support oil prices. The bank pointed out that oil-producing countries continue to demand high oil prices. Due to increased spending caused by long-term production cuts and economic transitions, oil-producing countries in the Middle East face significant pressure on their fiscal breakeven oil prices. According to IMF projections, Saudi Arabia's fiscal breakeven oil price has risen to $96.2 per barrel in 2024, and is expected to be $84.7 per barrel in 2025. In order to avoid oil prices persisting below fiscal breakeven levels and to safeguard national fiscal surpluses, Middle Eastern countries have a strong willingness to maintain high oil prices.