Oil stocks “hot to the touch”, collectively increase by 10-15% after 2 sessions, with some reaching the highest since the beginning of the year

The stock market opened the week brightly with oil stocks leading the way, as GAS, PLX, PVS, PVD, and BSR all surged between 10-15%. This surge coincides with escalating geopolitical tensions in the Middle East, pushing Brent crude prices to their highest in two months at 75 USD/barrel. This rally aligns with global oil price increases driven by EIA data showing a significant drop in U.S. crude oil reserves. SSI Research forecasts average oil prices to range from 70-75 USD/barrel in 2025, with profit growth for oil companies expected to improve due to factors like OPEC’s production cuts delay and stronger recovery in the Chinese market. Notably, BSR’s profit is expected to rise by 73%, while PVD and PVS will maintain growth momentum thanks to active E&P activities and major projects.