HK Stock Market Move | Oil stocks rose in the afternoon with Sinopec (00386) rising nearly 5%. Goldman Sachs raised its crude oil price expectations for the second half of the year.

Oil stocks rose in the afternoon, as of the time of publication, Sinopec (00386) rose by 4.61% to 4.54 Hong Kong dollars; PetroChina (00857) rose by 3.19% to 7.44 Hong Kong dollars; China Oilfield Services (02883) rose by 1.75% to 6.99 Hong Kong dollars; CNOOC (00883) rose by 1.08% to 18.72 Hong Kong dollars. On the news front, Goldman Sachs raised its crude oil price expectations for the second half of the year. The current market focus has shifted from concerns of economic recession to possible supply disruptions, reductions in oil inventories in OECD countries, a significant decrease in expectations of idle capacity, and concerns about limited production in Russia. The bank raised its Brent crude price forecast for the second half of 2025 by $5 to $66 per barrel; and raised its WTI crude oil price forecast by $6 to $63 per barrel. Huachuang Securities pointed out that the decline in processing activities, rising inventories of refined oil products, and a temporary downturn in demand have led to a slight drop in oil prices in the absence of new geopolitical stimuli. Looking ahead, the impact of the US-initiated trade war is gradually dissipating, the peak driving season in Europe and America will boost demand, the heating oil demand peak season is expected in the fourth quarter, oil prices are expected to stabilize and recover, and future downward pressure may come more from OPEC's production increases.