Core Insights - A supertanker, the New Vista, changed its destination from Rizhao to Ningbo and Zhoushan after U.S. sanctions were imposed on the Rizhao oil terminal [1][3] - The New Vista, chartered by Unipec, is carrying 2 million barrels of Abu Dhabi's Upper Zakum oil [2] - The Rizhao Shihua Crude Oil Terminal, partially owned by a Sinopec logistics unit, was sanctioned for receiving Iranian oil on sanctioned vessels [3][4] - Sinopec relies on the Rizhao terminal for one-fifth of its crude oil imports [4]

Core Viewpoint - The commencement of the desulfurization and demercaptan unit for coking liquefied gas marks a significant step in the transformation and upgrading project of Qilu Petrochemical, transitioning from planning to actual construction [1] Group 1: Project Overview - The project is a key outcome of the strategic cooperation between Sinopec and Shandong Province, involving the construction of various facilities including atmospheric distillation, high-end carbon materials, and ethylene [1] - The desulfurization and demercaptan unit has a designed processing capacity of 75,000 tons per year, serving as the first unit to be constructed under this project [1] Group 2: Significance and Goals - The project is expected to optimize the petrochemical industry layout and cultivate new productive forces, highlighting its importance in the sector [1] - Qilu Petrochemical aims to implement strict safety production responsibilities, develop a scientific construction plan, and optimize resource allocation during the project [1] Group 3: Environmental Commitment - The project is positioned as a green, low-carbon, and environmentally friendly demonstration project, emphasizing high standards in design, quality in construction, and efficiency in progress [1]

Core Viewpoint - The Energy ETF (159930) opened with a decline of 2.27%, indicating a negative market sentiment towards energy stocks [1] Group 1: ETF Performance - The Energy ETF (159930) opened at 1.333 yuan, reflecting a drop in value [1] - Since its establishment on August 23, 2013, the fund has achieved a return of 37.76% [1] - The fund's performance over the past month shows a return of 3.11% [1] Group 2: Major Holdings Performance - Major holdings in the Energy ETF experienced declines, including: - China Shenhua down 0.78% - China Petroleum down 1.69% - China Petrochemical down 1.30% - Shaanxi Coal and Chemical Industry down 1.79% - China National Offshore Oil Corporation down 1.64% - Yanzhou Coal Mining down 2.28% - Jereh Group down 3.94% - China Coal Energy down 1.68% - Shanxi Coking Coal down 2.60% - Meijin Energy down 2.82% [1] Group 3: Management Information - The Energy ETF is managed by Huatai-PineBridge Fund Management Co., Ltd. [1] - The fund managers are Dong Jin and Sun Hao [1]

Group 1 - The core viewpoint of the article highlights the decline in China's gasoline production, with a reported production of 12.16 million tons in April 2025, representing a year-on-year decrease of 8.6% [1] - Cumulative gasoline production from January to April 2025 reached 51.18 million tons, showing a cumulative decline of 6.1% compared to the previous year [1] Group 2 - The article references companies involved in the industry, including Baoli International (300135), Hengji Daxin (002492), and Sinopec (600028) [1] - The data is sourced from the National Bureau of Statistics and compiled by Zhiyan Consulting, which specializes in industry research and market analysis [2]

Core Insights - Sinopec Petroleum Engineering Design Company has developed an intelligent auxiliary evaluation system for pipeline radiographic defect detection, achieving a defect identification accuracy of 96% during testing, comparable to experienced human experts [1] - This achievement signifies a significant step towards the intelligent and automated transformation of non-destructive testing in long-distance pipeline engineering, promoting the application of AI technology in engineering design [1] Technology and Innovation - The intelligent system features its own knowledge base, a radiographic defect database, and employs advanced algorithms such as adaptive threshold histogram equalization and guided filtering to enhance image clarity [1] - By integrating the YOLOv7 model with an improved feature fusion network, the system accurately identifies and locates defects such as cracks, pores, and lack of fusion in pipelines, demonstrating the practical application of AI in non-destructive testing [1] Efficiency and Application - The system has improved the efficiency of evaluation by over 10 times, transforming the traditional reliance on human labor and experience, significantly enhancing detection accuracy and reducing subjective error risks [2] - The development team is continuously optimizing the system's functionality to enhance its applicability in various complex welding scenarios and is accelerating the pilot application of the system in pipeline engineering projects [2]

Investment Rating - The report maintains a positive outlook on the petrochemical industry [2] Core Views - The report highlights the unprecedented scale of refinery shutdowns in Russia, leading to increased Ural crude oil exports. As of the end of September, 38% of Russia's refining capacity (approximately 338,000 tons per day) was offline, primarily due to drone attacks from Ukraine [3][4][5] - The upstream sector is experiencing a decline in oil prices, while day rates for jack-up rigs are increasing. Brent crude oil futures closed at $62.73 per barrel, down 2.79% from the previous week [3][18] - The refining sector is seeing a drop in overseas refined oil crack spreads, while olefin spreads are rising. The Singapore refining margin for major products was $20.06 per barrel, down $1.48 from the previous week [3][54] - The polyester sector shows signs of recovery, with expectations for improved profitability as supply and demand conditions improve [3][13] Summary by Sections Upstream Sector - Brent crude oil prices decreased to $62.73 per barrel, with a weekly decline of 2.79%. U.S. commercial crude oil inventories increased by 5.507 million barrels to 420 million barrels [3][20] - The number of U.S. drilling rigs decreased by 2 to 547, with a year-on-year reduction of 39 rigs [3][32] Refining Sector - The report notes a significant drop in Russian refining capacity due to drone attacks, with a 5.08% quarter-on-quarter decline in processing volume in Q3 2025 [3][9] - The report indicates that the domestic refining product spread has improved, but remains at a low level [3][51] Polyester Sector - The report indicates that PTA profitability has declined, while polyester filament profitability has increased. The average price of PTA in East China was 4,528.6 yuan per ton, down 1.69% week-on-week [3][13] - The report expresses optimism for leading polyester companies such as Tongkun Co. and Wankai New Materials, anticipating a gradual improvement in the industry [3][13] Investment Recommendations - The report recommends focusing on leading refining companies such as Hengli Petrochemical, Rongsheng Petrochemical, and Sinopec, as well as upstream oil service companies like CNOOC Services and Haiyou Engineering [3][13]

Investment Rating - The report maintains an "Overweight" rating for the oil and petrochemical industry [5] Core Views - The geopolitical risks in the Middle East have significantly eased following the ceasefire agreement between Israel and Hamas, which is expected to reduce the geopolitical risk premium on oil prices [1][10] - OPEC+ plans to increase production by 137,000 barrels per day in November, although the actual increase may fall short of this target due to limited spare capacity among member countries [2][14] - The reintroduction of tariffs by the U.S. on imports from China may negatively impact global oil demand, leading to a supply surplus and potential downward pressure on oil prices in the fourth quarter [3][19] Summary by Sections OPEC+ Production and Geopolitical Risks - The ceasefire agreement in the Israel-Hamas conflict is expected to alleviate geopolitical tensions, potentially lowering oil prices [1][10] - OPEC+ has announced a cautious increase in production, with a total increase of 1.75 million barrels per day recorded so far in 2025 [2][14] - The production capacity of major OPEC+ members varies, with Saudi Arabia having significant spare capacity while Russia's production is constrained [2][14] Tariff Risks and Demand Outlook - The U.S. will impose a 100% tariff on imports from China starting November 1, which could disrupt global oil demand [3][19] - The IEA projects a global oil demand increase of 740,000 barrels per day in 2025, while supply is expected to grow by 2.7 million barrels per day, leading to a potential oversupply situation [3][19] Investment Recommendations - The report suggests a long-term positive outlook for major oil companies and oil service sectors, emphasizing the potential for recovery in chemical demand due to macroeconomic improvements [4] - Specific companies to watch include China National Petroleum Corporation, Sinopec, and CNOOC, along with their respective oil service subsidiaries [4]

Investment Rating - The report maintains a "Positive" investment rating for the oil processing industry [1]. Core Insights - International oil prices have decreased as of October 10, 2025, with Brent and WTI prices at $62.73 and $58.90 per barrel, respectively, reflecting a decline of 2.79% and 3.25% from the previous week [2][20]. - The report highlights concerns over supply surplus due to OPEC's planned production increase and the resumption of oil exports from the Kurdish region, alongside geopolitical tensions in the Middle East [2][9]. - The oil and petrochemical sector has shown resilience, with a 2.99% increase in the sector's performance compared to a 0.51% decline in the broader market (CSI 300) [10][13]. Oil Price Review - As of October 10, 2025, Brent crude futures settled at $62.73 per barrel, down $1.80 (-2.79%) from the previous week, while WTI crude futures settled at $58.90 per barrel, down $1.98 (-3.25%) [2][20]. - The report notes that the Urals crude price remained stable at $65.49 per barrel, while ESPO crude increased by $0.53 (+0.88%) to $60.43 per barrel [2][20]. Offshore Drilling Services - The number of global offshore self-elevating drilling rigs was 371, a decrease of 1 from the previous week, while floating drilling rigs increased by 3 to a total of 132 [24][33]. U.S. Oil Supply - U.S. crude oil production reached 13.629 million barrels per day, an increase of 124,000 barrels from the previous week [46]. - The number of active drilling rigs in the U.S. decreased by 4 to 418, and the number of fracturing fleets also decreased by 4 to 175 [46]. U.S. Oil Demand - U.S. refinery crude processing increased to 16.297 million barrels per day, up 129,000 barrels from the previous week, with a refinery utilization rate of 92.40%, up 1.0 percentage points [56]. - The report indicates that U.S. gasoline and distillate inventories have decreased, suggesting a rise in oil demand [2][9]. U.S. Oil Inventory - As of October 3, 2025, total U.S. crude oil inventories stood at 827 million barrels, an increase of 4 million barrels (+0.49%) from the previous week [65]. - Strategic oil reserves were at 407 million barrels, up 285,000 barrels (+0.07%), while commercial crude oil inventories rose by 3.715 million barrels (+0.89%) to 420 million barrels [65].

Investment Rating - The industry investment rating is maintained as "Positive" [5] Core Viewpoints - The basic chemical industry is facing short-term challenges due to renewed US-China trade disputes, which have raised concerns about demand and led to a significant drop in international oil prices, with Brent crude oil prices falling by 4.8% [8] - Despite short-term pressures, the long-term outlook for the petrochemical industry remains positive, as high tariffs from trade disputes are unlikely to have a lasting impact, and domestic companies have gained valuable experience in navigating such challenges [8] - The green low-carbon sector is expected to become a new industry trend, with significant market potential for green methanol, bio-aviation fuel, and green polyester, which are anticipated to achieve rapid growth as they align with sustainable development goals [8] Summary by Sections Investment Recommendations and Targets - The report recommends buying shares of Wan Kai New Materials (301216) for its leading position in the green polyester industry. Other recommended stocks include: - Runfeng Co., Ltd. (301035) - Guoguang Co., Ltd. (002749) - Hailier (603639) - Sinopec (600028) - Hengli Petrochemical (600346) - Rongsheng Petrochemical (002493) - Wanhua Chemical (600309) - Huayi Group (600623) [3]

Group 1 - The core viewpoint of the article is that Sinopec has officially launched its recruitment for 2026 graduates, focusing on attracting talent in key areas such as traditional industry transformation, emerging industry development, and future industry layout [1][3] - Sinopec aims to recruit graduates with expertise in petroleum and petrochemical fields, as well as in urgent and scarce disciplines like new energy, new materials, and artificial intelligence [3] - The company will conduct campus recruitment presentations at relevant universities to encourage graduates to apply [3]