HK Stock Market Move | Oil stocks rose against the market trend as geopolitical risks intensified supply concerns. The IEA warned that the expected crude oil supply gap for the third quarter has doubled.

Oil stocks rose against the market trend. As of the time of writing, China Oilfield Services (02883) rose by 2.93% to HKD 7.19; CNOOC (00883) increased by 2.17% to HKD 24.44; and PetroChina (00857) gained 1.15% to HKD 9.675. In terms of news, the 60-day negotiation window set by the memorandum of understanding between the United States and Iran expired on August 17. On the 17th, Iran stated that it had set a final deadline of several weeks for the U.S. to fulfill the memorandum, warning that if diplomatic efforts failed, tensions in the Strait of Hormuz and surrounding areas would escalate. Trump indicated that he would not seek to extend the memorandum. Analysts believe that the confrontation between the two sides is unlikely to end in the short term. The International Energy Agency (IEA) noted that although the rate of decline in oil demand is slowing, persistent supply disruptions are further tightening the balance of supply and demand in the market. The IEA expects a global oil supply gap of 1.8 million barrels per day in the third quarter, which is more than double the previous forecast of approximately 800,000 barrels per day. Meanwhile, the tightening supply in the refined oil market has pushed the refining margins of Atlantic China Welding Consumables, Inc. in coastal areas to a historic high in July.