Media365
Chinese oil producers advanced after two of the country’s major players reported stronger first-quarter earnings, buoyed by a surge in crude prices.
Shares of China Petroleum and Chemical Corp, also known as Sinopec, rose 0.7 per cent to HK$4.62 in Hong Kong, while its Shanghai-listed stock gained 1.1 per cent to 5.41 yuan. China National Overseas Oil Corporation (CNOOC) climbed 1.7 per cent to HK$29.46 and PetroChina added 1.6 per cent to HK$11.86.
Oil stocks have been in focus since crude prices spiked following the blockade of the Strait of Hormuz and escalating strikes by the US and Iran on energy infrastructure in the Middle East, which tightened global supply. Brent crude surged 41 per cent in March, extending its first-quarter gain to 70 per cent.
“Oil prices have potential for further upside and are expected to remain elevated throughout 2026,” said Shao Jingyu, an analyst at Shenwan Hongyuan Group. “Oil producers will benefit from that.”
Sinopec’s net profit rose 28 per cent year on year to 17 billion yuan (US$2.5 billion) in the first quarter, while revenue increased 3.9 per cent, according to an exchange filing on Wednesday. The integrated oil and refining giant said higher crude prices boosted inventory values and improved margins for refined products.
The company cautioned, however, that its business faced mounting pressure from renewable energy, which overtook oil as China’s second-largest energy source after coal last year.
