China Galaxy Securities: Oil stocks soar, SSC（Sinopec oilfield service corporation ）up over 6%

China Galaxy Securities, giving the oil a Recommended (Hold) rating.

On the supply side： on Feb. 5, the EU's price limit mechanism for Russian seaborne petroleum products officially emerged. On Feb. 10, Russia announced plans to cut crude oil production by 500,000 barrels per day in March, a reduction of about 5%. OPEC+ maintained its previous production policy, and U.S. crude oil production grew slowly.

On the demand side： the epidemic disturbance is gradually weakening, and China's economic improvement is expected to be stronger. Russia's initiative to cut production and China's crude oil consumption improvement is expected to support oil prices.