Hong Kong stocks were adjusted today, and the three major indices continued to weaken. The decline in petroleum stocks, which have led the market since this year, is particularly obvious. At most, CNOOC, the leader, fell by more than 6%.
As of press release,$CNOOC (00883.HK)$,$SINOPEC CORP (00386.HK)$Both fell by more than 2%.$KUNLUN ENERGY (00135.HK)$,$PETROCHINA (00857.HK)$Follow the decline.
According to the news, market leader CNOOC released its annual results after reaching a new high the day before. The decline in both net revenue and profit raised concerns in the market.
Financial reports show that CNOOC's revenue in 2023 was 416.609 billion yuan, down 1% year on year, and net profit was 123.843 billion yuan, down 13% year on year, and lower than market expectations of 13.3 billion yuan.
The reason for this is mainly related to the year-on-year decline in international oil prices. According to CNOOC's announcement, the company's petroleum liquid sales volume during the reporting period was 514.5 million barrels, up 7.5% year on year, but the average oil price was 77.96 US dollars/barrel, down about 19.3% year on year, which is basically in line with international oil price trends.
It is worth noting that international oil prices also experienced continuous adjustments this week due to macroeconomic factors such as the recent failure of the Federal Reserve's interest rate cut in March and the Bank of Japan's first interest rate hike after a lapse of 17 years.
WTI crude oil futures fell to the $80 mark
On the other hand, Kuwait Petroleum CEO Sheikh Nawaf Al-Sabah recently stated that if the Red Sea crisis continues for six months, it may cause a shortage of the global tanker fleet.
According to reports, fears of an attack forced many container shipping and tanker companies to divert routes to the Cape of Good Hope in southern Africa, increasing shipping time and costs, and fundamental contradictions in the petroleum industry gradually became apparent.
Furthermore, on Thursday, the US Biden administration introduced “the strictest automobile emission standards in US history,” which is expected to boost sales of electric vehicles, but also put pressure on traditional petrochemical energy demand.
Currently, the EIA estimates that demand during the peak season in 2024 will increase by 80,000 b/d compared to 2023, and decrease by 60,000 b/d in 2025 compared to 2024. That is, gasoline demand will enter a steady range, and demand during the peak season will be lower than in 2019 and 2021.
Editor/Jeffrey