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Middle East tensions lift oil prices, China's 'Big Three' oil stocks rally in Hong Kong
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Shares of China's three major state-owned oil companies, collectively known as the 'Three Barrels,' rose in Hong Kong trading on March 28, 2025. PetroChina (00857) gained 3.61%, Sinopec (00386) rose 2.03%, and CNOOC (00883) added 1.71%. The uptick followed a sharp increase in international oil prices, with Brent crude and WTI both rising over 1% intraday. The move was driven by renewed geopolitical uncertainty after U.S. President Donald Trump stated on March 27 that he expects U.S.-Iran negotiations to restart within a week but also said he is 'always considering' resuming military strikes on Iran. In response, Iranian Foreign Minister Abbas Araghchi said Iran is prepared for war but has not abandoned diplomacy. Guangfa Securities commented that geopolitical conflicts highlight energy security value, and that the 'Three Barrels' have a strategic role in ensuring China's energy supply, given the country's high dependence on imported oil and gas. The brokerage noted that the three companies increased domestic oil and gas production in the first half of 2026, reinforcing their role as a national security cornerstone.
Source report
Hong Kong-listed shares of China's "three oil majors" climbed on Monday, driven by a sharp uptick in international crude oil prices.
As of press time:
- PetroChina (00857.HK) rose 3.61% to HK$9.75
- Sinopec (00386.HK) gained 2.03% to HK$4.515
- CNOOC (00883.HK) increased 1.71% to HK$23.80
Market Drivers
International oil prices saw a significant rally this morning, with both Brent crude and WTI crude rising over 1% intraday.
The move follows remarks by U.S. President Donald Trump on the 27th, who said he expects the U.S. and Iran to resume negotiations within the next week. However, he also noted that he has been "considering" whether to resume military strikes against Iran. In response, Iranian Foreign Minister Abbas Araghchi stated that Iran is prepared for renewed conflict with the U.S., though it has not abandoned diplomatic channels.
Analyst Commentary
Everbright Securities noted that geopolitical conflicts underscore the value of energy security, highlighting the strategic importance of China's three state-owned oil giants.
Key points from the analysis:
- China's reliance on foreign oil and natural gas remains high
- Geopolitical tensions threaten global energy supply chain security
- The country's task of ensuring oil and gas security remains challenging
In the first half of 2026, domestic oil and gas equivalent production for PetroChina, Sinopec, and CNOOC rose 1.0%, 0.7%, and 3.3% year-on-year, respectively. The "three oil majors" have intensified efficient exploration and cost-effective development, achieving notable results in stabilizing and increasing production, thereby positioning domestic resources as a cornerstone of national security.
Source
智通财经网Eastern
Part of this Story
Iran threatens Strait of Hormuz closure, Hong Kong oil stocks surge on geopolitical tensions