Kuwait Petroleum Corporation and Abu Dhabi National Oil Company have initiated reductions in crude oil production. On March 9, shares of oil and gas resource companies in the A-share market opened collectively higher. Among individual stocks, Guanghui Energy, Shandong Molong, Zhunyou Energy, Sinopec Oilfield Service, and Cnooc Limited surged by the daily limit. Tongyuan Petroleum rose over 15%, while Tianhao Energy, Deshi Co., and Xinjin Power advanced more than 10%. Buckam Energy, PetroChina, CNOOC Limited, Haimo Technology, and Sinopec also recorded gains.
By the morning session close, share prices of the "big three" oil companies climbed further. PetroChina (601857.SH) increased by 7.56% to 13.23 yuan per share; Cnooc Limited (600938.SH) rose 9.95% to 44.52 yuan per share; and Sinopec (600028.SH) advanced 3.63% to 7.13 yuan per share.
The surge is driven by fears of supply shortages stemming from the Iran-Israel conflict and the closure of the Strait of Hormuz, which have propelled international oil prices upward. On March 9, both U.S. West Texas Intermediate and Brent crude opened sharply higher, swiftly surpassing the $100 per barrel mark and reaching a peak above $110. At the time of reporting, WTI crude futures were up 18.67% at $107.87 per barrel, while global benchmark Brent crude futures climbed 16.78% to $108.24 per barrel.
The last time international oil prices exceeded $100 per barrel was following the outbreak of the Russia-Ukraine conflict in 2022. The sharp rise in global oil prices is also linked to news of production halts by Middle Eastern oil producers after disruptions in the Strait of Hormuz.
According to a report from CCTV News, on the afternoon of March 7 local time, Kuwait Petroleum Corporation issued a statement announcing "precautionary cuts" in crude oil production and refining due to the current regional situation. The statement emphasized that the company is fully prepared to resume normal production as soon as conditions permit.
Abu Dhabi National Oil Company announced on March 7 that it is adjusting offshore production in response to storage limitations caused by Middle Eastern tensions disrupting shipping. The Strait of Hormuz is the world's busiest waterway for daily crude oil transit, serving as a critical route for oil and gas exports from Gulf countries such as Saudi Arabia, Iraq, Qatar, the UAE, Kuwait, Bahrain, and Iran.
Data from commodity analytics firm Kpler shows that last year, daily crude shipments through the strait exceeded 14 million barrels, accounting for nearly one-third of global seaborne crude exports. Shipping data indicates that oil tankers in the waters surrounding the Strait of Hormuz have generally reduced their speeds to zero. Several European governments have issued emergency directives to their flagged tankers en route, prohibiting passage through the strait to avoid security risks amid escalating tensions.
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