Understanding the Market | Oil and gas stocks surged in the afternoon, Shandong Molong rose by 22% at one point, and MI Energy increased by over 12%

Oil and gas stocks surged in the afternoon. As of the time of publication, Shandong Molong rose 16.83% to HKD 4.72; MI Energy rose 12.82% to HKD 0.044; PETRO-KING rose 10% to HKD 0.077; JX ENERGY rose 5.56% to HKD 0.475. In terms of news, it was reported that Trump set a new deadline of 10-12 days for Russia, stating that if no agreement is reached, secondary sanctions will be imposed on Russian oil. As a result, international oil prices rose significantly overnight, with WTI crude oil futures closing up 3.75% at USD 69.21 per barrel. Brent crude oil futures closed up 3.53% at USD 72.51 per barrel. Huatai Futures pointed out that after Trump announced a shortened observation period for the Russia-Ukraine ceasefire, oil prices rose. The firm believes this presents a dilemma for Trump; sanctions against Russia are needed for the Russia-Ukraine ceasefire, but this will lead to rising oil prices and soaring inflation. It cannot be ruled out that this is another TACO trade. Although the current crude oil fundamentals are relatively strong, demand is expected to gradually decline starting in August, and the fundamentals do not support rising oil prices