Core Insights - The Central State-Owned Enterprises Modern Energy Index has seen a strong increase of 1.70%, with notable gains from stocks such as China Xidian up 6.61% and Shanghai Electric up 6.40% [3] - The National Development and Reform Commission has released a plan aiming for a new energy storage capacity of over 180 million kilowatts by 2027, enhancing project economics through supportive policies [5] - The demand for energy storage is expected to maintain a high growth rate, with projections indicating a 30%-40% increase in global energy storage installations over the next two years [4] Group 1: Market Performance - The Central State-Owned Enterprises Modern Energy ETF (561790) has increased by 1.63%, marking a three-day consecutive rise, with a latest price of 1.25 yuan [3] - The ETF has seen a weekly cumulative increase of 2.85% as of October 24, 2025, ranking in the top third among comparable funds [3] - The ETF's trading volume reached 416.82 million yuan with a turnover rate of 9.1% [3] Group 2: Policy and Economic Outlook - The new energy storage plan outlines a target of 180 million kilowatts by 2027, with supportive measures from provinces like Henan to enhance project viability [5] - The energy storage market is experiencing robust demand, driven by new pricing policies and increased investment from social capital [4] - The lithium battery demand is projected to exceed 2700 GWh next year, with a year-on-year growth rate of over 30% [4] Group 3: Industry Composition - The top ten weighted stocks in the Central State-Owned Enterprises Modern Energy Index account for 47.72% of the index, including major players like Yangtze Power and China Nuclear Power [6] - The Central State-Owned Enterprises Modern Energy ETF closely tracks the index, which includes 50 listed companies involved in green energy and fossil energy sectors [5]

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].

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].

Core Insights - Shenzhen's Dalanwan Terminal has successfully completed its first LNG bunkering service using the "ship-to-ship" method, marking a significant milestone in the region's green shipping capabilities [1] - The LNG bunkering business in Shenzhen has shown remarkable growth, with a year-on-year increase of 157% in LNG bunkering volume from January to July 2023, reaching 310,200 cubic meters [1] - The total LNG bunkering volume for the first three quarters of 2023 has further increased to 370,600 cubic meters, maintaining a year-on-year growth rate of 103% [1] Group 1 - Yantian Port has established a mature service system for LNG bunkering, completing Shenzhen's first LNG bunkering in 2022 and achieving the first bonded LNG bunkering in South China in 2023 [2] - In 2024, Yantian Port set a record for simultaneous bunkering of two 20,000 TEU container ships, with a single operation supplying over 9,700 cubic meters of fuel [2] - The comprehensive coverage of LNG bunkering across Shenzhen's three major port areas is expected to attract international vessels to choose Shenzhen as their fuel supply port [2] Group 2 - The "CMA CGM Seine" vessel, the world's largest dual-fuel ship, has frequently received LNG bunkering in Shenzhen, with each operation supplying around 8,000 cubic meters [2] - The "Mediterranean Catania" vessel completed an 8,000 cubic meter bonded LNG bunkering at Yantian Port earlier this year [2] - The LNG bunkering business not only enhances port services but also generates significant economic benefits, with Yantian Port projected to achieve an LNG bunkering volume of 300,000 cubic meters in 2024, nearly six times the total for 2023 [2]

Investment Rating - The report maintains a positive outlook on the oil and petrochemical sector, with various indices showing significant weekly gains, such as the oil and gas resource index increasing by 3.80% and the oil and gas extraction service index rising by 10.04% [9][10]. Core Insights - Oil prices have risen primarily due to geopolitical factors, particularly the U.S. sanctions on Russian suppliers Rosneft and Lukeoil, which have raised concerns about short-term supply reductions [15][17]. - The report suggests that the actual impact of sanctions may be limited, as historical data indicates that trade flow is more affected than actual supply levels [17]. - The report highlights that the U.S. crude oil inventory has decreased, with a net import increase, and the active oil rig count remains stable at 418 [15][17]. Summary by Sections Market Overview - The petrochemical sector outperformed the Shanghai Composite Index by 1.45%, with various sub-sectors showing positive performance [9]. - The average operating load of domestic refineries was reported at 80.89%, a slight decrease from the previous week [3]. Oil Sector - As of October 23, WTI crude was priced at $61.79, up by $4.33, while Brent crude was at $65.98, up by $3.90 [15]. - The EIA reported a decrease in commercial crude oil inventory by 961,000 barrels, with gasoline inventory down by 214,700 barrels [15]. Refining Sector - The average refining margin for major refineries was reported at 512.62 yuan/ton, down by 35.2 yuan/ton from the previous period [3]. - The report indicates a weak domestic gasoline market, with average operating loads for Shandong independent refineries at 50.04% [3]. Polyester Sector - The report notes an increase in raw material prices, leading to a slight uptick in replenishment willingness among weaving enterprises [3]. - The average profit level for polyester filament POY150D was reported at 96.02 yuan/ton, a decrease of 80.44 yuan/ton from the previous week [3]. Olefin Sector - The domestic ethylene market average price was reported at 6,370 yuan/ton, a slight decrease of 15 yuan/ton [3]. - The report anticipates continued weak consolidation in the ethylene market due to negative downstream profits [3].

Core Points - The company will hold a Q3 2025 earnings presentation on October 31, 2025, from 16:00 to 17:00 [2][3] - The presentation will be conducted in an interactive online format, allowing investors to engage and ask questions [3][4] - Investors can submit questions from October 24 to October 30, 2025, through the Shanghai Stock Exchange Roadshow Center website or via the company's email [2][4] Meeting Details - The meeting will take place at the Shanghai Stock Exchange Roadshow Center [2][4] - Key participants will include the CEO, independent non-executive directors, CFO, and the board secretary, although adjustments may occur due to special circumstances [4] - The meeting will be conducted in Chinese [4] Post-Meeting Information - After the earnings presentation, investors can access the meeting details and main content through the Shanghai Stock Exchange Roadshow Center [5]

Core Viewpoint - China National Offshore Oil Corporation (CNOOC) has seen continuous net buying from southbound funds for three consecutive days, with a total net buying amount of HKD 29.75 billion and a cumulative stock price increase of 3.62% [2] Group 1: Trading Activity - On October 24, the total trading volume of active stocks through the Hong Kong Stock Connect reached HKD 457.51 billion, with a net buying amount of HKD 14.12 billion [2] - CNOOC was among the active stocks on October 24, with a trading amount of HKD 17.35 billion through the Hong Kong Stock Connect and a net buying amount of HKD 5.71 billion [2] Group 2: Stock Performance - CNOOC's stock price has increased by 3.62% during the period of continuous net buying [2]