Hong Kong-listed oil and gas stocks faced selling pressure and moved lower. As of the time of writing, SHANDONG MOLONG (00568) fell 6.43% to HK$5.97. CNOOC (00883) declined 4.1% to HK$26.6. CHINA OILFIELD (02883) dropped 3.14% to HK$8.33. The decline followed a sharp drop in international oil prices, influenced by improved navigation conditions in the Strait of Hormuz. Brent crude fell to around $105 per barrel, while U.S. crude dropped below $100. Market expectations for a ceasefire and the reopening of the Strait of Hormuz have increased after former U.S. President Donald Trump stated that the U.S. and Iran are in the "final stage" of their conflict. Trump said on May 20th that the conflict between the U.S. and Iran could end soon, with negotiations entering their final phase. Separately, the naval force of Iran's Islamic Revolutionary Guard Corps reported that over the past 24 hours, 26 vessels, including oil tankers, container ships, and other merchant vessels, passed through the Strait of Hormuz with coordination and security assurances from Iran.
Comments