Rising oil prices drive upstream investments, oil service companies continuously receive large orders

Recently, international oil prices have been continuously rising, and the A-share oil service equipment sector has performed remarkably, with companies such as Tong Petrotech, XZPT, and Keli Co., Ltd. seeing their stock prices rise steadily. Among them, Keli Co., Ltd., listed on the Beijing Stock Exchange, has seen a cumulative increase of over 57% in its stock price over the past three trading days. "Due to geopolitical influences, international oil prices have returned to above $70 per barrel." According to a relevant person in charge at HAIMO, as long as oil prices are supported, global oil exploration companies are still willing to continue investing, and the increase in capital expenditures in the oil and gas sector may bring more business opportunities to oil service companies. Interviews with reporters revealed that, based on the latest international situation, oil and gas resource development, and product orders, the demand from overseas oil companies has increased, and domestic oil service companies are also continuously securing large orders. The expectation of international oil prices operating at a mid-to-high level is likely to enhance the participation of oil service equipment companies, which are important links in the industrial chain