HK Stock Market Move | Oil stocks collectively decline, the US and Iran have signed a memorandum of understanding, IEA warns of potential oversupply of crude oil next year.

Oil stocks collectively fell, as of the time of writing, China Oilfield Services (02883) fell 3.62% to HK$6.92; PetroChina (00857) fell 3.42% to HK$9.12; CNOOC (00883) fell 3.06% to HK$22.14; Sinopec (00386) fell 2.59% to HK$4.14. On the news front, on June 18, international oil prices continued to decline, with Brent crude futures falling by over 2% to $77.51 per barrel. WTI crude oil fell below $74 per barrel, hitting a new low since early March. According to CCTV News, on June 17, two U.S. officials revealed that the U.S. and Iran had remotely signed a memorandum of understanding aimed at ending the war and opening the Strait of Hormuz. The agreement is now in effect, with the signing ceremony originally scheduled to take place in Switzerland on the 19th. In addition, on Wednesday local time, the International Energy Agency (IEA) stated in its highly anticipated monthly report that after the supply shock caused by the Middle East war, the global oil market is expected to experience a strong recovery, but it will take several months for the Strait of Hormuz transportation to return to normal. The report shows that as the energy gateway gradually resumes navigation, global oil supply is expected to increase by 8 million barrels per day by 2027, potentially leading to significant oversupply in the market, providing a window to replenish depleted inventories.