Morgan Stanley raised its Brent crude oil forecast for this year to USD 72.5 per barrel and upgraded the target prices for the "three oil giants," urging to "overweight."

Morgan Stanley released a report, raising its forecast for Brent crude oil prices in 2026 to $72.5 per barrel, with the 2027 and long-term forecasts expected to be $65 per barrel. The bank remains optimistic about the "three oil giants," expecting that the market's continued focus on energy security will support the strategic value and profitability sustainability of China National Petroleum Corporation (00857.HK); it raised the target price for China National Petroleum Corporation's H-shares from HKD 10.25 to HKD 13.25, and the target price for its A-shares (601857.SH) from RMB 11.4 to RMB 14.7.

Additionally, the bank believes that although Sinopec (00386.HK) faces freight inflation pressure, part of it is offset by inventory gains and the appreciation of the RMB. At the same time, if raw material supply remains constrained, the fuel and chemical market in mainland China may shift from structural oversupply to supply shortages, supporting a strengthening of profit margins, which would lead to an upward trend in Sinopec's downstream profitability; it raised the target price for Sinopec's H-shares from HKD 6.4 to HKD 6.98, and the target price for its A-shares (600028.SH) from RMB 6 to RMB 8.

The target price for CNOOC (00883.HK) H-shares was raised from HKD 17.6 to HKD 28.9. All three oil giants' H-shares received an "overweight" rating