Core Insights - A new company named Chaoyang Zhongneng Petrochemical Co., Ltd. has been established with a registered capital of 40 million RMB [1] - The legal representative of the company is Li Xiangbo [1] - The company’s business scope includes sales of petroleum products, retail of clothing and accessories, daily necessities, hardware products, electronic products, lubricants, cameras and equipment, automobiles, auto parts, and sales of new energy vehicle charging facilities and complete vehicles [1] Company Structure - The company is jointly owned by Sinopec Sales Co., Ltd. and Chaoyang Energy Group Co., Ltd., holding 51% and 49% of the shares respectively [1]

Core Insights - The refining and trading sector increased by 0.99% on October 27, with Unified Corporation leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Sector Performance - Unified Corporation (600506) saw a closing price of 22.40, with a rise of 6.67% and a trading volume of 350,800 shares, amounting to a transaction value of 789 million [1] - Other notable performers included Wanbangda (300055) with a 2.37% increase, Hengyi Petrochemical (000703) up by 1.78%, and Tongkun Co. (601233) rising by 1.33% [1] Capital Flow - The refining and trading sector experienced a net outflow of 7.43 million from main funds, while retail funds saw a net inflow of 13.89 million [2] - The main funds' net inflow for China Petroleum (601857) was 72.09 million, while Unified Corporation (600506) had a net inflow of 50.48 million [3] - Retail investors showed a net outflow from major stocks, with Unified Corporation experiencing a net outflow of 3.37 million from retail funds [3]

Core Viewpoint - The coal sector is experiencing a reversal in supply-demand dynamics, with the bottom of the cycle confirmed in Q2 2025, leading to an upward trend in coal prices due to supply constraints and increasing demand [3][5]. Group 1: Market Performance - The energy ETF (159930) has seen significant inflows, with a net inflow of 113 million yuan over the past 10 days, indicating strong investor interest in the energy sector [4]. - The ETF's component stocks have shown mixed performance, with notable gains in coal companies like China Coal Energy, while others like Shanxi Coking Coal have experienced declines [4]. Group 2: Supply and Demand Dynamics - National coal production has declined for three consecutive months since July, influenced by policies aimed at curbing overproduction, which is expected to continue impacting supply [3][5]. - Electricity consumption growth has rebounded to 4.6% in August and September, suggesting a potential increase in demand as winter approaches [3]. Group 3: Policy Impact - The "anti-involution" policies have led to stricter enforcement against overproduction, which is a key factor supporting the recent rise in coal prices [3][5]. - Ongoing safety inspections and regulatory measures are expected to further constrain coal production, reinforcing the upward price trajectory [3]. Group 4: Investment Opportunities - The coal sector is characterized by high performance, cash flow, and dividends, making it an attractive investment option amid a recovering macroeconomic environment [5]. - The energy sector, particularly coal and oil, offers high dividend yields, with coal stocks showing a yield of approximately 4.69% [6].

1. Report Industry Investment Rating - The investment view on the synthetic rubber industry is "oscillating" [4]. 2. Core View of the Report - Trade frictions have driven up the rubber sector, and the price of BR has been oscillating upwards. Macro - news is causing frequent disturbances. Although the transaction of cis - butadiene rubber has improved slightly due to the price increase, the industry's recent valuation has been repaired and increased. However, attention should still be paid to the impact of changes in production start - up and inventory clearance progress on the spot transaction rhythm [4]. 3. Summary by Relevant Catalogs 3.1 Market Review - As of October 23, 2025, Sinopec's ex - factory price of BR9000 was stable at 11,200 yuan/ton, while PetroChina's main sales companies raised the ex - factory price of BR9000 to 11,200 - 11,300 yuan/ton, an increase of 200 yuan/ton. The market price of cis - butadiene rubber declined slightly this week and then remained stagnant. The decline in raw material prices weakened cost support, but market focus shifted to supply. With the expectation of eased international trade frictions and the strengthening of the natural rubber market, the short - term bearish sentiment in the market subsided. Traders actively tried to raise prices, and PetroChina's sales companies raised supply prices. Downstream buyers continued to purchase at low prices and were firm in bargaining. Although the supply prices of Sinopec and PetroChina were high and some brands had firm offers due to tight spot resources, private resources still had price advantages, leading to good large - order transactions in the first and middle of the week, but the inquiry atmosphere weakened in the second half of the week [7]. 3.2 Supply Analysis 3.2.1 Butadiene - Last week, domestic butadiene production was [missing data], with a capacity utilization rate of [missing data]. Several major plants such as Nanjing Chengzhi, Sierbang, Yanshan Petrochemical, and others maintained a shutdown state. Although the plants of Fushun Petrochemical and Beifang Huajin restarted, the output within the week was limited, resulting in a slight decline in production [4]. 3.2.2 Cis - Butadiene Rubber - Yangzi Petrochemical's cis - butadiene rubber plant was under maintenance, and Qilu Petrochemical's plant restarted after maintenance. Additionally, Sichuan Petrochemical, Zhenhua New Materials, Zhejiang Petrochemical, and Maoming Petrochemical all had regular maintenance plans [4]. 3.3 Demand Analysis 3.3.1 Semi - Steel Tires - During the period, market demand increased. With the cooling and snowfall in Northeast and Inner Mongolia, the sales of snow tires increased, and the market replenishment demand rose. The trading between channels and terminal stores was good. The all - season tire market performed steadily, with regular channel sales and weakly stable prices [4]. 3.3.2 All - Steel Tires - The replacement market showed average performance. Some manufacturers withdrew promotional policies, and the market acceptance was limited. Channel prices were mainly stable, with some product agents raising quotes, but actual transactions continued at previous prices considering channel stability. Terminal demand was weak, and some transactions still had flexible promotional policies [4]. 3.4 Inventory Analysis 3.4.1 Butadiene - Last week, the butadiene port inventory was 2.46 million tons, a month - on - month decrease of 20.13%. The enterprise inventory increased month - on - month. Some downstream plants in East China stopped for maintenance, causing a slight fluctuation in butadiene inventory. The port inventory decreased significantly month - on - month due to limited ship arrivals and low tradable volume, leading to a phased reduction in inventory [4]. 3.4.2 Cis - Butadiene Rubber - The combined inventory of high - cis cis - butadiene rubber enterprises and traders was 3.317 million tons, a month - on - month increase of 1.25%. The strengthening of natural rubber drove up the mainstream supply price of synthetic rubber. Some manufacturers stocked up, resulting in an overall increase in enterprise inventory and a decrease in trader inventory [4]. 3.5 Basis and Spread Analysis - The basis of cis - butadiene rubber in North China was - 270 yuan/ton, in East China was - 120 yuan/ton, and in South China was - 70 yuan/ton. The RU - BR spread was 4,215 yuan/ton (an increase of 11.80%), the NR - BR spread was 1,385 yuan/ton (an increase of 6.54%), and the BR - SC ratio was - 0.70% [4]. 3.6 Profit Analysis - The production gross profit of butadiene through oxidative dehydrogenation was - 154 yuan/ton, and the production gross profit through C4 extraction was 1,594.88 yuan/ton. The production gross profit of cis - butadiene rubber was 48 yuan/ton, with a gross profit margin of 0.43% [4]. 3.7 Geopolitical and Macroeconomic Factors - The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China clarified the development goals and key tasks for the 15th Five - Year Plan period. The meeting between the US and Russian presidents at the Budapest Summit in Hungary was postponed, and no meeting plan has been arranged yet. The military confrontation between the US and Venezuela has intensified, causing continuous market news disturbances. Europe and the US have imposed sanctions on two Russian refineries, and India has re - planned its energy procurement plan [4]. 3.8 Trading Strategy - Unilateral trading: The market is expected to oscillate upwards. Arbitrage: Pay attention to going long on BR and short on NR/RU. Key risks to monitor include downstream demand, cost changes, plant maintenance conditions, and geopolitical factors [4].

Investment Strategy - Crude oil supply growth is slowing due to declining global oil and gas capital expenditure, which has decreased significantly since the Paris Agreement in 2015. In 2021, global oil and gas capital expenditure was $351 billion, down nearly 22% from the 2014 peak. Major energy companies are cautious about capital spending due to long-term low oil prices and increasing decarbonization pressures [9][27][28] - The Brent crude oil spot price was $63.48 per barrel, up 1.25% week-on-week, while WTI crude oil was $59.31 per barrel, up 1.75% week-on-week. The outlook suggests that oil prices will remain volatile due to geopolitical risks and OPEC+ production cuts [10][32] Crude Oil - The report indicates that the overall supply of crude oil is limited, with demand remaining resilient. The OPEC+ production cuts are expected to continue, leading to limited supply growth in the coming year [9][27] - The report suggests focusing on companies that benefit from mid-to-high oil price fluctuations, such as China National Offshore Oil Corporation (CNOOC), China National Petroleum Corporation (CNPC), and Sinopec [10][49][50] Coal - The average market price for thermal coal at Qinhuangdao Port was 757.9 yuan per ton, up 4.84% week-on-week. The increase in demand due to falling temperatures and the tightening of supply due to safety inspections at coal mines are driving coal prices higher [11][12] - The report highlights companies with strong resource endowments and integrated operations, such as China Shenhua Energy and Shaanxi Coal and Chemical Industry, as potential investment opportunities [12][13] Coking Coal - Coking coal prices are experiencing slight increases due to ongoing demand from steel companies, despite some resistance to high-priced coal. The price of main coking coal at Jing Tang Port was 1,760 yuan per ton, up 2.92% week-on-week [14] - The report emphasizes the structural scarcity of high-quality coking coal resources in China and suggests focusing on companies like Huabei Mining and Pingmei Shenma Group that have strong resource acquisition capabilities [14] Natural Gas - The European Union is expected to ban Russian natural gas by the end of 2027, which has led to an increase in natural gas prices. The average price of natural gas in the U.S. was $3.41 per million British thermal units, up 13.0% week-on-week [15][16] - The report notes that the EU's price cap agreement on natural gas could exacerbate liquidity issues in the market, potentially leading to supply shortages [16] Oilfield Services - The oilfield services industry is expected to maintain its prosperity due to government policies supporting energy security. In 2023, the total capital expenditure of the three major oil companies was 583.3 billion yuan, with CNOOC showing a compound growth rate of 13.1% [17][18] - The report indicates that the number of active drilling rigs globally was 1,812, with a slight increase in the U.S. and Middle East regions, suggesting a stable demand for oilfield services [18]

Oil Market Overview - The average weekly price for Brent and WTI crude oil futures is $63.4 and $59.3 per barrel, respectively, with increases of $1.4 and $1.0 compared to the previous week [1][2] - U.S. crude oil production stands at 13.63 million barrels per day, showing a decrease of 10,000 barrels per day week-on-week [2] - Active oil rigs in the U.S. increased by 2 to a total of 420, while active fracturing fleets rose by 3 to 175 [2] Crude Oil Inventory - Total U.S. crude oil inventory is 830 million barrels, with commercial inventory at 420 million barrels, strategic inventory at 410 million barrels, and Cushing inventory at 20 million barrels. Changes from the previous week include decreases of 1.4 million barrels and 0.96 million barrels in total and commercial inventories, respectively, while strategic inventory increased by 0.82 million barrels and Cushing inventory decreased by 0.77 million barrels [1][2] Refinery Activity - U.S. refinery crude processing volume is 15.73 million barrels per day, up by 600,000 barrels per day from the previous week, with a refinery utilization rate of 88.6%, an increase of 2.9 percentage points [2] Oil Trade Dynamics - U.S. crude oil imports, exports, and net imports are 5.92 million, 4.20 million, and 1.72 million barrels per day, respectively, with imports increasing by 390,000 barrels per day and exports decreasing by 260,000 barrels per day [2] Refined Product Overview - Average prices for gasoline, diesel, and jet fuel are $78, $95, and $89 per barrel, respectively, with week-on-week changes of +$1.1, +$2.0, and -$5.1 [3] - Refined product inventories for gasoline, diesel, and jet fuel are 220 million, 120 million, and 40 million barrels, respectively, with decreases of 2.15 million, 1.48 million, and 1.49 million barrels week-on-week [4] - Production levels for gasoline, diesel, and jet fuel are 959, 463, and 164 thousand barrels per day, with increases of 24, 4, and decreases of 7 thousand barrels per day, respectively [5] Refined Product Demand and Trade - Consumption of gasoline, diesel, and jet fuel is 845, 385, and 172 thousand barrels per day, with no change in gasoline, a decrease of 39 thousand barrels per day in diesel, and an increase of 3 thousand barrels per day in jet fuel [6] - Gasoline imports, exports, and net exports are 80, 1.21 million, and 1.14 million barrels per day, with changes of -30, +190, and +230 thousand barrels per day, respectively [6] Recommended Companies - Companies recommended for investment include China National Offshore Oil Corporation (CNOOC), PetroChina, Sinopec, CNOOC Services, and others [6]

Core Insights - The article discusses the recent developments in the oil processing industry, highlighting a rebound in international oil prices due to easing trade tensions and supportive inventory data [1][2]. Oil Price Review - As of October 24, 2025, Brent crude oil futures settled at $65.20 per barrel, up $3.91 per barrel (+6.38%) from the previous week, while WTI crude oil futures settled at $61.50 per barrel, up $4.35 per barrel (+7.61%) [2]. - The Urals crude oil spot price remained stable at $65.49 per barrel, while the ESPO crude oil spot price increased by $2.62 per barrel (+4.54%) to $60.35 per barrel [2]. Offshore Drilling Services - As of October 20, 2025, the number of global offshore self-elevating drilling rigs decreased by 3 to 370, with reductions in Africa, the Middle East, North America, and other regions, while Europe saw an increase of 1 rig [2]. - The number of global offshore floating drilling rigs remained unchanged at 132, with decreases in Africa and Europe, and increases in Southeast Asia and other regions [2]. U.S. Crude Oil Supply - As of October 17, 2025, U.S. crude oil production was 13.629 million barrels per day, a decrease of 0.07 million barrels per day from the previous week [3]. - The number of active drilling rigs in the U.S. increased by 2 to 420 as of October 24, 2025, while the number of hydraulic fracturing fleets increased by 3 to 178 [3]. U.S. Crude Oil Demand - As of October 17, 2025, U.S. refinery crude oil processing volume was 15.730 million barrels per day, an increase of 0.600 million barrels per day, with a refinery utilization rate of 88.60%, up 2.9 percentage points from the previous week [3]. U.S. Crude Oil Inventory - As of October 17, 2025, total U.S. crude oil inventory was 831 million barrels, a decrease of 0.142 million barrels (-0.02%) from the previous week [3]. - Strategic crude oil inventory increased by 0.819 million barrels (+0.20%) to 409 million barrels, while commercial crude oil inventory decreased by 0.961 million barrels (-0.23%) to 423 million barrels [3]. U.S. Refined Oil Inventory - As of October 17, 2025, U.S. gasoline, diesel, and jet fuel inventories were 21,667.9 million barrels, 11,555.1 million barrels, and 4,292.9 million barrels, respectively, with changes of -0.2147 million barrels (-0.98%), +0.028 million barrels (+0.18%), and -0.1485 million barrels (-3.34%) [4]. Biofuel Prices - As of October 24, 2025, the FOB price for ester-based biodiesel was $1,190 per ton, while hydrocarbon-based biodiesel was $1,900 per ton, both unchanged from the previous week [4]. - The FOB price for biojet fuel in China was $2,400 per ton, and in Europe, it was $2,710 per ton, both remaining stable [4].

Core Viewpoint - The 20th Central Committee of the Communist Party of China emphasizes accelerating high-level technological self-reliance and strengthening talent development to lead a new quality of productive forces [1] Group 1: Technological Self-Reliance - The focus is on implementing the key tasks of building a strong technology and talent nation as outlined in the Central Committee's meeting [1] - Skilled talents are identified as a crucial support for China's manufacturing and innovation capabilities, highlighting the need for a robust skilled workforce for high-quality development [1] Group 2: Skills Development and Education - There is a call for widespread vocational education and training to meet the skill enhancement needs of various workers, ensuring a continuous supply of high-quality skilled talents for economic and social development [1] - The establishment of a "Model Workers and Craftsmen Entering Campus" mechanism is proposed to inspire university students to pursue skills for national service and personal development [1] Group 3: Curriculum and Training Initiatives - The need to align with the "14th Five-Year Plan" development blueprint to cultivate skilled talents is emphasized, along with exploring diverse implementation paths [1] - Encouragement for educational institutions and instructors to develop tailored technical courses that meet their specific contexts is highlighted, promoting a skill-oriented society where skills are valued and learned by all [1]

Report Information - Report Title: Crude Oil Weekly Report: US Sanctions Two Russian Oil Companies, International Oil Prices Rise [1] - Report Date: October 26, 2025 [1] - Analysts: Chen Shuxian, Zhou Shaowen [1] Industry Investment Rating - Not provided in the report Core Viewpoints - This week, Brent/WTI crude oil futures had weekly average prices of $63.4/$59.3 per barrel, up $1.4/$1.0 per barrel from last week. Various data on US crude oil and refined oil, including inventory, production, demand, and import/export, showed different changes [2]. - Recommended related listed companies include CNOOC, PetroChina, Sinopec, etc.; companies to be concerned about include Sinopec Oilfield Service, CNPC Engineering, etc. [3] Summary by Directory 1. Crude Oil Weekly Data Briefing - **Upstream Key Company Performance**: The stock prices of companies such as CNOOC, PetroChina, and Sinopec showed different percentage changes in the recent week, month, three - month, one - year, and year - to - date periods. Their valuations, including total market value, net profit attributable to the parent company, PE, and PB, also varied [9]. - **Crude Oil Price**: Brent, WTI, Russian Urals, and Russian ESPO crude oil had different weekly average prices and percentage changes. The LME copper spot price and the US dollar index also had corresponding fluctuations [9]. - **Inventory**: US crude oil total inventory, commercial crude oil inventory, strategic crude oil inventory, and Cushing crude oil inventory had different inventory levels and changes [9]. - **Production**: US crude oil production, the number of active crude oil rigs, and the number of active fracturing fleets had corresponding changes [9]. - **Refinery**: US refinery crude oil processing volume and operating rate, as well as the operating rates of Chinese local and major refineries, showed different changes [9]. - **Import/Export**: US crude oil import, export, and net import volumes had corresponding changes [9]. 2. This Week's Petroleum and Petrochemical Sector Market Review - **Petroleum and Petrochemical Sector Performance**: The report presents the performance of the petroleum and petrochemical sector, but specific data is not detailed here [12]. - **Sector Listed Company Performance** - **Refined Oil Price and Spread**: The weekly average prices and spreads of gasoline, diesel, and jet fuel in China, the US, Europe, and Singapore showed different changes [22]. - **Inventory**: The inventories of gasoline, diesel, and jet fuel in the US and Singapore had different inventory levels and changes [22]. - **Production**: The production of gasoline, diesel, and jet fuel in the US had corresponding changes [22]. - **Consumption**: The consumption of gasoline, diesel, and jet fuel in the US had corresponding changes [22]. - **Import/Export**: The import, export, and net export volumes of gasoline, diesel, and jet fuel in the US had corresponding changes [22]. - **Oil Service Sector**: The daily rates of offshore jack - up drilling platforms and semi - submersible drilling platforms had different changes [22]. 3. Crude Oil Sector Data Tracking - **Crude Oil Price**: Analyzes the prices and spreads of various crude oils, as well as the relationship between the US dollar index, LME copper price, and WTI crude oil price [28][35]. - **Crude Oil Inventory**: Discusses the relationship between US commercial crude oil inventory and oil prices, as well as the inventory levels and changes of US total crude oil, commercial crude oil, strategic crude oil, and Cushing crude oil [41][54]. - **Crude Oil Supply**: Analyzes US crude oil production, the number of crude oil rigs, and the number of fracturing fleets and their relationship with oil prices [57][61]. - **Crude Oil Demand**: Analyzes US refinery crude oil processing volume, operating rate, and the operating rates of Shandong and Chinese major refineries [65][69]. - **Crude Oil Import/Export**: Analyzes US crude oil import, export, and net import volumes [75]. 4. Refined Oil Sector Data Tracking - **Refined Oil Price**: Analyzes the relationship between international oil prices and domestic gasoline, diesel retail prices, as well as the prices and spreads of crude oil and refined oil in different regions [80][107]. - **Refined Oil Inventory**: Analyzes the inventory levels and changes of gasoline, diesel, and jet fuel in the US and Singapore [121][133]. - **Refined Oil Supply**: Analyzes the production of gasoline, diesel, and jet fuel in the US [140]. - **Refined Oil Demand**: Analyzes the consumption of gasoline, diesel, and jet fuel in the US and the number of US airport passenger security checks [143]. - **Refined Oil Import/Export**: Analyzes the import, export, and net export volumes of gasoline, diesel, and jet fuel in the US [150][153]. 5. Oil Service Sector Data Tracking - Analyzes the average daily rates of self - elevating drilling platforms and semi - submersible drilling platforms in the oil service sector [165][169].

Investment Rating - The report maintains an "Outperform" rating for the oil and petrochemical sector [1]. Core Viewpoints - The oil price has seen an increase due to intensified sanctions by the U.S. and Canada on Russian oil companies, with WTI crude futures rising by 6.53% and Brent crude futures by 7.09% from October 17 to October 24, 2025 [6]. - Geopolitical tensions, particularly regarding the fragile ceasefire in Gaza and the ongoing conflict between Russia and Ukraine, continue to impact oil prices [6]. - The U.S. government plans to purchase 1 million barrels of oil to replenish its strategic reserves, which may provide short-term support for oil prices [6]. - In the fluorochemical sector, the supply of popular refrigerants is tight, leading to sustained price increases, with domestic demand for refrigerants expected to rise in the fourth quarter [6]. - The semiconductor materials sector is experiencing a positive trend with inventory reduction and improving fundamentals, driven by domestic substitution [7]. Summary by Sections Oil and Petrochemicals - The report highlights the impact of U.S. sanctions on Russian oil companies and geopolitical tensions on oil prices [6]. - Basic data tracking indicates a slight decrease in U.S. commercial crude oil inventories, while gasoline and jet fuel inventories continue to decline [6][15]. - The report suggests that domestic oil companies are diversifying their oil and gas sources to reduce sensitivity to oil price fluctuations [7]. Fluorochemicals - The supply of second-generation refrigerants is decreasing due to policy restrictions, while demand for third-generation refrigerants is expected to grow, driven by government incentives [6]. - The report notes that the production of household air conditioners is projected to increase significantly in the last quarter of 2025, which will boost demand for refrigerants [6]. Semiconductor Materials - The semiconductor materials sector is witnessing an upward cycle, with inventory reduction trends and improving end-market conditions [7]. - The report recommends focusing on companies in the semiconductor materials sector that are benefiting from domestic substitution and cyclical recovery [7].