Energy Shares Decline Across the Board in Morning Session as Trump Urges U.S.-Iran Deal; Oil Prices Tumble

Stock News
3 hours ago

Oil and gas stocks fell broadly during early trading. At the time of writing, SINOPEC CORP (00386) dropped 4.06% to HK$5.43, PETROCHINA (00857) declined 3.28% to HK$9.15, CHINA OILFIELD (02883) fell 3.06% to HK$9.49, and CNOOC (00883) decreased 2.79% to HK$24.42. The downturn follows a sharp drop in international oil prices on Thursday, with WTI crude futures settling down 2.77% at $62.84 per barrel and Brent crude futures ending 2.71% lower at $67.52 per barrel. On February 12, U.S. President Donald Trump stated that the United States "must" reach an agreement with Iran, warning of "very serious" consequences otherwise. Trump expressed hope for a U.S.-Iran deal within "about a month." Additionally, the latest EIA data showed U.S. crude inventories surged by 8.53 million barrels in the week ended February 6, marking the largest weekly increase since January of last year. According to Zhao Ruochen, a senior researcher at Galaxy Futures, market focus is shifting from geopolitical risks back to supply-demand fundamentals, with a key trigger being substantive progress in U.S.-Iran negotiations. If a short-term framework is reached, oil prices could significantly retreat from geopolitical premiums and revert to trading on oversupply concerns. Persistent inventory builds, larger-than-expected OPEC+ output increases, and weakening demand are expected to cap further upside for crude prices.

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