25-04-2018

A global recovery story drives stronger demand for crude oil worldwide. According to OPEC, world oil demand grew by 1.73% to 97.07 million barrels per day in 2017, with China and emerging European countries recorded 3-4% solid demand growth last year. We expect oil demand remains solid in 2018, with strong demand growth from developing countries such as China and India continues to support oil prices uptrend. Besides, downward pressure from high global oil inventories on oil prices has disappeared as OPEC members and non-OPEC countries, led by Saudi Arabia and Russia, has fully complied with their commitments to cut oil production. Oil prices have surged by 13% this year and climbed by 35% since last June. While we expect the uptrend of oil prices to continues this year amid strong global demand and production curbs, investors are suggested to accumulate CNOOC (883.HK) and Sinopec Corp (386) as a medium-to-long term holding.

General Disclosure and Disclaimer:
Frontier Capital Management Limited (“FCM”) is a subsidiary of Frontier Financial Group (“the Group”). It is regulated and licensed by Hong Kong Securities and Futures Commission, also is an Exchange Participant of The Stock Exchange of Hong Kong Limited, and a Direct Clearing Participant of Hong Kong Securities Clearing Company Limited.
The information contained in this website is for informational purposes, and does not intend to recommend, invite, offer, or confirm of any terms. Based on the sources that are believed to be reliable, FCM attempts to provide accurate, complete, and up-to-date information and analysis. However, FCM cannot represent or guarantee its accuracy, completeness, or timeliness of such source and information. Before making any decision on your investment, you should weigh the provided information carefully and bear any responsibility and risk incurred. And you should seek for advice of a professional financial advisor.
The Group, its subsidiaries and connected persons may have held some of the equity securities mentioned in this article, but the Group and FCM will place your financial interests ahead of their own.