Sinopec (00386) fell more than 4% again. As of the time of writing, it dropped 3.61%, trading at HKD 4.8 with a turnover of HKD 8.67 billion.
According to Zhitong Finance, Sinopec (00386) fell more than 4% again. As of the time of writing, it dropped 3.61%, trading at HKD 4.8 with a turnover of HKD 8.67 billion.
In terms of news, Iran’s new Supreme Leader Mojtaba Khamenei stated in his first address on national television that Iran will continue to adopt strategic measures, including blocking the Strait of Hormuz, and open new fronts if necessary. In addition, the unprecedented coordinated release of oil reserves by the International Energy Agency failed to calm the market as expected but instead exacerbated panic. The market is concerned that the risk of crude oil supply disruptions will continue to expand.
UBS Group analyzed the sensitivity of CNOOC to oil prices assuming oil prices range between USD 50 to USD 120 per barrel. CNOOC shows high sensitivity to oil prices, while PetroChina’s profits will also rise when oil prices increase. Notably, UBS’s base case assumes Brent crude oil futures will be at USD 72 this year. If oil prices rise to USD 80, USD 90, or USD 100, Sinopec’s profits are expected to increase by 8%, 14%, and 13%, respectively. However, if oil prices exceed USD 100, Sinopec’s profitability may decline.
