HK Stock Market Move | Most oil and gas stocks moved higher. Saudi Aramco headquarters attacked and set on fire. Geopolitical conflict is expected to push the midpoint of oil and gas capital expenditure upward.

Most oil and gas stocks moved higher. As of press time, CHINA OILFIELD (02883) rose 5.04% to HK$8.03; Shandong Molong Petroleum Machinery (00568) gained 3.23% to HK$3.84; SINOPEC SSC (01033) climbed 2.34% to HK$0.655; CNOOC (00883) advanced 1.57% to HK$24.66. On the news front, mutual strikes between Yemen and Saudi Arabia have escalated. On October 14 local time, according to a Saudi Energy Ministry official, an administrative office building of Saudi Aramco in Dhahran, eastern Saudi Arabia, was attacked, with no casualties reported. U.S. President Trump said in a social media post on the 13th that the Houthi armed group attacked Saudi Arabia in a "very nasty" manner, and likely deliberately drove up oil prices ahead of the U.S. midterm elections. Soochow believes that geopolitical conflicts are expected to further strengthen global energy security demands and push the midpoint of oil and gas capital expenditure upward. Reviewing the 2022 Russia-Ukraine conflict, after oil and gas prices remained elevated, upstream oil and gas companies saw significant improvement in cash flow, and capital expenditure subsequently rebounded, further tilting toward LNG, deepwater oil and gas, and unconventional energy sectors.