PetroChina Shares Drop Nearly 5% in Late Trading Amid US-Iran Deal Push and Saudi Price Cut

Stock News15:52

Shares of PetroChina (HKEX: 00857) fell close to 5% in late-session trading, declining 4.3% to HK$10.23 by the close, with a turnover of HK$976 million.

The decline followed comments from US officials, who indicated a continued push for a deal with Iran regardless of Israel's stance. Additionally, Saudi Aramco made a significant reduction in the official selling price for its Arab Light crude oil bound for Asia in July, slashing the premium by $6 per barrel from $15.50 to $9.50.

Analysts had previously noted that geopolitical risk premiums were embedded in oil prices. Positive signals in ceasefire negotiations could lead to a rapid unwinding of this premium. Recent assessments of global demand, factoring in refinery utilization and other consumption indicators, suggest that world oil demand declined by 4% to 5% in April. This was attributed to disruptions in crude shipments through the Strait of Hormuz and weaker consumption in regions including China and Western Europe.

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