Bank of America Securities: Lower this year's oil price forecast to $65, lower target prices for PetroChina (00857) and Sinopec Corp (00386).

Bank of America Securities released a research report stating that they expect higher tariffs to hit global demand, leading to an oversupply of 650,000 barrels per day in the global oil market this year, up from 320,000 barrels per day. Consequently, they have lowered their Brent crude price forecast for this year to $65 per barrel, back to the level at the beginning of the year, and have reduced their 2026 forecast from $73 per barrel to $70 per barrel. Bank of America Securities believes that PETROCHINA (00857) has strong profit resilience, and with the decrease in oil prices, the unit profit margin of Sinopec may increase this year. Based on the latest oil price forecast and the potential for profit margin improvement, they have lowered their profit forecast for the company for the next two years by 11% and 8%, and have lowered their target price from HK$7.2 to HK$6.8, recommending a "buy" rating. Bank of America Securities also reiterates its "buy" rating for SINOPEC CORP (00386), with profit forecasts for the next two years lowered by 27% and 10%, and the target price lowered from HK$5 to HK$4.7. They expect Sinopec to be more affected by inventory losses when oil prices fall.