Source: Finance Association
Author: Feng Yi
① The situation in the Red Sea has caused fluctuations in international energy prices. How do institutions view the subsequent impact? ② The Hong Kong energy sector bucked the trend and strengthened. Which individual stocks are relatively active?
Recently, due to the continuing tense situation in the Red Sea and nearby waters, it directly threatened the safety of oil transportation routes in the relevant waters, triggering large short-term fluctuations in global energy prices.
Today, the oil and gas sector of Hong Kong stocks also received market attention. By the close, some individual stocks had rebounded against the market.
According to reports, after attacks on merchant ships by the Houthis escalated, energy giant British Petroleum issued a statement saying, “In view of the worsening safety situation in the Red Sea shipping, we have decided to suspend all travel through the Red Sea.”
Market shock was triggered immediately after the news broke. European gas futures prices soared, and the intraday increase increased to 13% for a while.
On the other hand, international oil prices have also continued to rise, driven by the geopolitical situation.
On Monday, the settlement price of international crude oil futures rose more than 1%, the WTI crude oil futures contract for January rose 1.46%, and the February contract for Brent crude oil rose by 1.83%. At an intraday high, it rose nearly 4%.
What is even more noteworthy is that since the situation in the Red Sea escalated on December 13, international oil prices have risen four times in a row, highlighting the impact of changes in the Red Sea situation on short-term oil prices.
Furthermore, Sinopec announced on December 18 that Sinopec Group, the majority shareholder, has increased its H shares by 25.5 million shares, involving about HK$99.71 million, further boosting oil and gas stock sentiment.
According to a report released by Huatai Futures Energy Group on December 19, fuel oil inventories in northwest Europe fell 4.1% in the week up to December 14, to their lowest level since July 2022, and there is a possibility of a potential rise in the short-term fuel oil market.
CITIC Futures analyst Gui Chenxi said in a December 19 report that the current net long positions of Brent and WTI crude oil funds have fallen to a ten-year low. Once subsequent consistent expectations change, it may also mean that the price reversal window is approaching.
editor/tolk