Lates News

A research report released by Lyon stated that the escalating tensions between Israel and Iran have caused oil prices to surge to $75 per barrel, but the stock prices of oil companies are low, reflecting the market's belief that there will not be a supply crisis. The report indicated that initial reports show 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. Before the surge in oil prices, the global oil market was influenced by negative news of OPEC+ accelerating production. At the current pace, the report predicts that OPEC+ will complete production cuts by the end of the year, and the market estimates that oil prices will be $50 per barrel in a situation of oversupply. In terms of stocks, the report mentioned that the performance of China Petroleum's stock price in the past two months is 26% higher than that of Sinopec and 21% higher than that of CNOOC. It is believed that this situation will continue, so China Petroleum 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 rated "outperform" in the market.