Oil and gas stocks experienced a significant pullback this morning, with Shandong Molong (00568) plummeting over 8%. As of this writing, the stock was down 8.65%, trading at HK$3.8, with a turnover of HK$122 million. The decline is attributed to the possibility of former President Trump avoiding a strike on Iran, which interrupted the recent upward trend in international oil prices. Overnight, international crude prices fell sharply. Brent crude futures settled down $2.76, or 4.15%, at $63.76 per barrel. U.S. crude oil dropped $2.83, or 4.56%, to $59.19. Reports indicate that Trump has postponed a decision on whether to launch a military strike against Iran. Multiple sources from the U.S., Israel, and Arab nations stated that military options remain on the table, but uncertainty has significantly increased. Huatai Futures analysts believe that if Trump continues to delay military action against Iran, the geopolitical risk premium will rapidly dissipate. Furthermore, the CPC terminal is expected to resume operations soon, indicating that the foundation supporting the oil price increase is not solid.
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Hong Kong Stocks Movement | International Oil Prices Plunge, Erasing Geopolitical Premium; Shandong Molong (00568) Dives Over 8%
Stock News01-16 10:37
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