Chinese Energy Stocks Rally after a Sharp Rise in Oil Prices

Chinese energy stocks listed in Hong Kong Exchange surged on Friday following a sharp rise in crude oil prices after the report of explosions in Iran that were expected to be from Israel in a retaliation to Iran’s earlier attack this week.


Current Price % Change HKD Change
China Huarong Energy 0.027 3.85 % 0.001
Yuan Heng Gas Holdings 0.054 3.85 % 0.002
United Energy Group 0.55 3.77 % 0.02
CNOOC 18.9 2.72 % 0.5
PetroChina 7.5 2.46 % 0.18
JX Energy 0.255 2 % 0.005
Sinopec Corp 4.64 1.31 % 0.06


Oil prices saw a significant jump of $3 per barrel on Friday in response to unconfirmed reports of explosions in Iran. Brent futures surged by $3.03 or 3.5%, reaching $90.14 a barrel, while U.S. West Texas Intermediate crude also rose by $3.03 or 3.7% to $85.76 per barrel.

ABC News later reported, citing a U.S. official, that the explosion in Iran was indeed caused by Israel. This development has captured the attention of investors who have been closely monitoring Israel’s response to the Iranian drone attacks on April 13. The geopolitical risk premium in oil prices had been easing throughout the week, with expectations that any Israeli retaliation against Iran would be tempered by international pressure.

Meanwhile, Reuters reported that an Iranian official told its reporter on Friday that explosions heard in Isfahan were a result of the activation of Iran’s air defence systems. The official confirmed that there was no missile attack against Iran.