HK Stock Market Move | Oil stocks continue to decline, with WTI and Brent prices falling. JP Morgan pointed out that international oil prices have not reflected the physical interruption in the Middle East.

Oil stocks continue to decline. As of the time of publication, CNOOC (00883) fell by 3.54%, to 27.78 Hong Kong dollars; PetroChina (00857) fell by 2.36%, to 10.33 Hong Kong dollars; Sinopec (00386) fell by 1.05%, to 4.73 Hong Kong dollars. On the news front, on Wednesday, WTI crude oil futures fell by 2% to 93.62 US dollars per barrel. However, S&P Global Platts reported that the spot price of Dubai crude oil for May loading reached a record high of 157.66 US dollars per barrel on Tuesday, surpassing the historical high of 147.50 US dollars set by Brent crude oil futures in 2008. At the same time, Oman crude oil futures reached a new high of 152.58 US dollars per barrel on Tuesday. J.P. Morgan believes that there is currently a clear mismatch between the pricing of international benchmark crude oil and supply disruptions in the Middle East. The core issue is that Brent and WTI crude oil are both benchmark indicators at either end of the Atlantic China Welding Consumables, Inc. basin, while the current impact is concentrated in the Middle East. In this context, the apparent price stability of Brent and WTI should not be seen as evidence of ample global supply. It reflects a temporary cushion created by regional inventory excess, benchmark composition, and policy interventions.