HK Stock Market Move | Oil stocks continue to rebound, the Fed cuts rates more than expected, and Citi says fourth-quarter supply shortages may support oil prices.

Oil stocks continue to rebound, as of press time, PetroChina (00857) rose 4.35% to 6 Hong Kong dollars; China Oilfield Services (02883) rose 3.29% to 6.59 Hong Kong dollars; CNOOC (00883) rose 2.87% to 19.34 Hong Kong dollars; Sinopec (00386) rose 2.92% to 4.58 Hong Kong dollars. On the news front, the Federal Reserve announced a 50 basis point rate cut, higher than market expectations, and market risk appetite has generally improved. Citigroup previously stated that it is expected that in the fourth quarter, the crude oil market may see a seasonal deficit of about 400,000 barrels per day, which could provide temporary support for oil prices. However, with the global oil supply and demand balance deteriorating in most scenarios by 2025, it is still expected that there will be new price weakness by 2025, and Brent crude prices will trend towards $60 per barrel. Huachuang Securities pointed out that oil prices in 2024 are expected to continue at high levels, the three major oil companies are actively promoting increased reserves and production, and are expected to enjoy rich profits from high oil prices; strict control over refining capacity is expected to boost production, and the continuous improvement in profits from reduced oil and increased chemicals. In addition, under the background of state-owned enterprise reform, the valuation of the three major oil companies is expected to return to rational levels, and the average dividend yield of the three major oil companies' A shares/H shares is much higher than that of overseas oil and gas companies and the three major operators. The bank pointed out that the valuation of the three major oil companies is expected to be reshaped.