Market Overview
Investors pushed global oil and gas equities lower on Monday after crude prices extended the losses recorded last week. The price decline was triggered by U.S. President Donald Trump announcing that negotiations over the Strait of Hormuz would commence on Monday, with Saudi Arabia, the United Arab Emirates, Qatar and Iran urging Washington to postpone any planned military action. The prospect of de‑escalation eased fears of supply disruptions that had previously driven crude to multi‑month highs.
Equity Movements
In Europe, BP fell 2.6% and Shell dropped 1.7% by 07:24 GMT. Ithaca Energy slipped 4.1%, while TotalEnergies slid 2.1%, Equinor shed 2.9%, Eni lost 2.3% and Repsol slipped 2.2%. In Asia, Japan’s Inpex Corp fell about 3% and Eneos Holdings lost 2.5%. Australian producers Santos and Woodside Energy declined 1.9% and 1.4% respectively. Chinese energy firms were more resilient; Hong‑Kong‑listed CNOOC slipped roughly 0.8% and its Shanghai‑listed shares (ticker 600938) fell 1.3%.
Macro Implications
The retreat in crude prices reduced the earnings outlook for upstream oil and gas companies and helped ease concerns about a renewed energy‑driven inflation shock. Lower energy costs could relieve pressure on central banks that are weighing the timing of future interest‑rate decisions, although market participants remain cautious because the negotiations over the Strait of Hormuz have not yet produced a formal agreement.
Outlook
Analysts will continue to monitor developments in the Middle East, as any disruption to shipping through the Strait of Hormuz would likely trigger an immediate impact on global oil prices and consequently on energy‑related equities.