HK Stock Market Move | Oil stocks collectively rise as the blockade of the Strait of Hormuz leads to energy supply interruptions. Institutions predict that short-term crude oil prices will remain strong.

Oil stocks collectively rose. As of press time, China Oilfield Services (02883) rose by 5.55% to HKD 9.31; PetroChina (00857) rose by 3.38% to HKD 11; CNOOC (00883) rose by 2.6% to HKD 27.58; Sinopec Corp (00386) rose by 1.33% to HKD 4.56. According to market media reports, on Wednesday, three ships were intercepted by Iran in the Persian Gulf and surrounding waters. At the same time, the US military has requested 31 ships to turn around or return to port since the blockade began. In addition, the US military claims that it will take 6 months to complete the mine clearance in the Strait of Hormuz. The latest developments have cast a shadow over the reopening of the Strait of Hormuz, thwarting hopes for the resumption of this critical maritime route. Barclays points out that the continued blockade of Iranian ports by the US has tightened the supply in the physical energy market, and the market has not fully realized the actual impact of the current supply interruptions. The bank believes that the current price of US oil stocks indicates that the market seems to have priced long-term oil prices at around $60 to $65 per barrel, which is clearly too optimistic, and predicts that oil prices will rise in the coming months. CITIC Futures analysis suggests that geopolitical risks and supply-demand imbalances will continue to support oil prices, and expects crude prices to remain strong in the short term.