On June 16, CNOOC fell 3.14% intraday, trading at approximately 23.5 HKD per share, with turnover of 10.15 billion HKD. The decline was driven by the confirmation that the US and Iran have reached a peace agreement, with the Hormuz Strait set to fully reopen following the formal signing ceremony on June 19.
The Hormuz Strait handles approximately 20% of global seaborne oil shipments daily and had been closed due to Middle East hostilities since late February. The agreement triggered a sharp oil price retreat, with WTI crude falling below $81 per barrel — a decline exceeding 4% — as the geopolitical risk premium that had previously supported prices rapidly unwound. Goldman Sachs had estimated that $15-20 of WTI crude pricing reflected geopolitical risk premium, which is now dissipating. Market participants also note that Iran's floating offshore oil storage, potentially amounting to tens of millions of barrels, could flood the spot market upon resumption of exports, adding further downside pressure.
Hong Kong-listed oil and gas stocks broadly weakened, with the sector showing uniform declines. Uncertainty remains as the US has retained the option to resume military strikes if Iran fails to comply during the 60-day negotiation period.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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