HK Stock Market Move | Oil stocks rebounded in early trading, but the risk of tariffs triggered a short-term decline in oil prices. Institutions pointed out that domestic oil companies are expected to weaken the sensitivity of oil prices.

In the early trading session, oil stocks rebounded. As of the time of publication, China Oilfield Services (02883) rose by 3.23% to 5.43 Hong Kong dollars; CNOOC (00883) rose by 3.84% to 16.22 Hong Kong dollars; SHANGHAI PECHEM (00338) rose by 2.75% to 1.12 Hong Kong dollars; PetroChina (00857) rose by 0.56% to 5.35 Hong Kong dollars. On the news front, on April 7, WTI crude oil futures continued to fall, dropping below $60 per barrel, the lowest level since April 2021, and Brent crude oil futures briefly dropped below $64 per barrel. Nanhua Futures stated that short-term concerns about systemic risks triggered by Trump's import tariffs and OPEC's attitude towards increasing production have put pressure on oil prices, leading to a significant short-term price drop. On the supply side, OPEC+ production remained stable in March, with the increase mainly coming from Kazakhstan and the decrease mainly from Iran and Venezuela. OPEC+ has decided to increase production by 410,000 barrels per day in May, exceeding market expectations, with the aim of facilitating the implementation of compensatory checks. On the demand side, global refining margins have slightly rebounded, with China's margins passively recovering due to increased refinery maintenance globally, leading to weak short-term demand. However, with the consumption peak season approaching in the medium term, there may be a boost in medium-term demand. Ping An Securities believes that the announcement of comprehensive tariffs by the United States is escalating concerns about the global economic slowdown after the trade war intensifies, putting significant downward pressure on oil prices. In addition, OPEC+ has decided to increase production by 411,000 barrels per day from May onwards, far exceeding previous market expectations, further exacerbating the pressure of global oversupply of crude oil. Although oil prices face the risk of further decline, domestic oil companies have reduced sensitivity to oil prices through integrated upstream and downstream operations and diversification of oil and gas sources. They are also accelerating exploration of offshore oil and gas resources domestically to reduce energy dependence on foreign sources. It is recommended to pay attention to the "Three Barrels of Oil" with relatively strong profit resilience.