Understanding the Market | Oil Stocks Lead the Gains as OPEC+ Pauses Production Increase in Q1 Next Year, Three Major Oil Companies Show Resilience Compared to Overseas Giants
Oil stocks led the gains, with PetroChina rising 3.62%, CNOOC rising 3.69%, SPC rising 1.5%, and Sinopec Corp. rising 1.45%. OPEC+ announced a halt to production increases in the first quarter of next year, boosting oil prices. Everbright Securities pointed out that although the performance of international oil and gas giants has declined, China's three major oil companies have shown resilience during the downturn in oil prices, demonstrating certain cyclical attributes and highlighting long-term value
According to Zhitong Finance APP, oil stocks are among the top gainers. As of the time of publication, PetroChina (00857) rose by 3.62% to HKD 8.31; CNOOC (00883) increased by 3.69% to HKD 20.5; Shanghai Petrochemical (00338) climbed by 1.5% to HKD 1.35; Sinopec Corp. (00386) went up by 1.45% to HKD 4.19.
On the news front, on Sunday, OPEC+ stated after an online meeting that eight member countries led by Saudi Arabia will increase production by 137,000 barrels per day in December, consistent with the production increase in October and November. However, the organization also announced that considering seasonal factors, it will suspend production increases from January to March next year, meaning OPEC+'s production increase plan has hit the brakes. This news boosted oil prices, with Brent crude rising to over USD 65 per barrel at one point, and WTI crude hovering around USD 61 per barrel.
Everbright Securities released a research report stating that in the third quarter of 2025, affected by falling oil prices and low refining profitability, the operating performance of international oil and gas giants declined year-on-year. ExxonMobil, Chevron, Shell, and Total reported year-on-year net profit declines of -14.3%, -33.9%, -9.6%, and -13.4%, respectively. In contrast, PetroChina and CNOOC's net profit declines in the first three quarters were smaller than most international oil and gas giants, highlighting the resilience of their performance during the oil price downturn. The "three oil giants" demonstrate certain cyclical attributes in their performance during the oil price decline. Additionally, the "three oil giants" continue to strengthen their reserves and production, highlighting their long-term value
