Lyon: All three major oil companies are rated "outperforming the market" with PetroChina as the top choice.

A research report released by Lyon stated that the escalating tension between Israel and Iran has caused oil prices to soar to $75 per barrel, but oil company stocks are underperforming, reflecting the market's belief that there will not be a supply crisis. The report indicated that preliminary information shows that attacks on Iran's oil production or refining facilities have not caused damage, but the market is concerned about the situation in the Strait of Hormuz, through which 20% of global oil is transported. Prior to the surge in oil prices, the global oil market was negatively impacted by news of OPEC+ accelerating production increases. At the current rate, the report expects OPEC+ to complete its production cuts by the end of the year. In a situation of oversupply, the market estimates that oil prices will be $50 per barrel. In terms of stocks, the report stated that the stock performance of PetroChina in the past two months has outperformed Sinopec and CNOOC by 26% and 21% respectively, and this trend is expected to continue. Therefore, PetroChina is the top choice with a target price of HK$8; followed by CNOOC with a target price of HK$23.1; and finally Sinopec with a target price of HK$4.6, all given a "outperform market" rating.