Shares of Sinopec increased 2.4% in Hong Kong and 1.3% in Shanghai alongside gains for CNOOC and PetroChina amid a surge in crude oil prices [1]. Brent crude prices jumped 41% in March and rose 70% in the first quarter of 2026 due to Middle East tensions and supply disruptions [1].
Sinopec reported a 28% year-on-year rise in net profit to 17 billion yuan (US$2.5 billion) in the first quarter, with revenues up 3.9% [1]. The company benefited from higher crude prices, which boosted its inventory values and refining margins [1].
Oil sector analyst Shao Jingyu of Shenwan Hongyuan Group said, "Oil prices have potential for further upside and are expected to remain elevated throughout 2026. Oil producers will benefit from that" [1].
Despite strong short-term gains, Sinopec faces mounting pressure from China's expanding renewable energy sector, which overtook oil as the country's second-largest energy source last year after coal [1].
Oil prices are forecast to stay high for the remainder of 2026, supporting earnings for major Chinese oil producers [1].
