Group 1 - The oil and gas extraction sector increased by 2.28% compared to the previous trading day, with China National Offshore Oil Corporation (CNOOC) leading the gains [1] - The Shanghai Composite Index closed at 4138.76, down 0.64%, while the Shenzhen Component Index closed at 14169.4, down 1.37% [1] - The main funds in the oil and gas extraction sector saw a net inflow of 17.23 million yuan, while retail investors experienced a net outflow of 19.37 million yuan [1] Group 2 - CNOOC (stock code 600938) had a closing price of 29.63 yuan, with a rise of 3.57% and a trading volume of 785,300 shares, amounting to a transaction value of 2.309 billion yuan [1] - Blue Flame Holdings (stock code 000968) closed at 7.08 yuan, up 1.72%, with a trading volume of 240,800 shares and a transaction value of 170 million yuan [1] - ST Xinchao (stock code 600777) closed at 3.92 yuan, down 0.25%, with a trading volume of 163,300 shares and a transaction value of 64.13 million yuan [1] - Intercontinental Oil and Gas (stock code 600759) closed at 3.58 yuan, down 0.56%, with a trading volume of 7,454,600 shares and a transaction value of 272.7 million yuan [1] Group 3 - CNOOC had a net inflow of 19.1 million yuan from main funds, but a net outflow of 38.67 million yuan from speculative funds and a net outflow of 15.3 million yuan from retail investors [2] - Blue Flame Holdings experienced a net inflow of 9.75 million yuan from main funds, but net outflows from both speculative and retail investors [2] - ST Xinchao had a net outflow of 8.93 million yuan from main funds, while it saw inflows from speculative and retail investors [2] - Intercontinental Oil and Gas had a net outflow of 17.5 million yuan from main funds, but inflows from speculative and retail investors [2]

Market Overview - The Shanghai Composite Index fell by 0.64% on January 13, with six industries experiencing gains, led by the oil and petrochemical sector, which rose by 1.62% [1] - The pharmaceutical and biological industry also saw an increase of 1.21% [1] - The defense and military industry and electronics sector faced the largest declines, with drops of 5.50% and 3.30% respectively [1] Capital Flow - The net outflow of capital from the two markets reached 162.743 billion yuan for the day [1] - Four industries experienced net inflows, with the pharmaceutical and biological sector leading at a net inflow of 4.348 billion yuan [1] - The oil and petrochemical industry followed with a net inflow of 586 million yuan [1] Oil and Petrochemical Sector - The oil and petrochemical industry rose by 1.62%, with a total net inflow of 586 million yuan [2] - Out of 47 stocks in this sector, 28 saw gains, including two that hit the daily limit [2] - The top stocks with significant net inflows included China National Offshore Oil Corporation (1.86 billion yuan), Sinopec (1.26 billion yuan), and Bohai Chemical (1.22 billion yuan) [2] Individual Stock Performance - The top performers in the oil and petrochemical sector included: - China National Offshore Oil Corporation: +3.57% with a turnover rate of 2.63% and a net inflow of 186.43 million yuan [2] - Sinopec: 0.00% change with a turnover rate of 0.26% and a net inflow of 125.57 million yuan [2] - Bohai Chemical: +10.14% with a turnover rate of 10.92% and a net inflow of 121.55 million yuan [2] - Conversely, the stocks with the largest net outflows included: - Intercontinental Oil and Gas: -0.56% with a net outflow of 1.6717 billion yuan [3] - China National Petroleum Corporation: +2.23% with a net outflow of 537.68 million yuan [3] - Zhongman Petroleum: +3.64% with a net outflow of 359.65 million yuan [3]

Group 1: Industry Overview - According to Raytad Energy, global upstream exploration and development spending is expected to be around $600 billion in 2025, a decrease of 4% year-on-year, with deepwater investments projected to decline by 6% [1] - China's crude oil production has rebounded since 2019 due to a long-term strategy for increasing reserves and production, with a CAGR of 2.2% from 2019 to 2024, while natural gas production has a CAGR of 7.3% during the same period [1] - The "Big Three" oil companies in China have significantly increased capital expenditures from 2020 to 2023 and are expected to maintain high levels in 2024 and 2025, which will support upstream reserve growth and benefit their oil service subsidiaries [1] Group 2: Company Performance - In the first half of 2025, major oil service companies benefited from the ongoing domestic "increase reserves and production" initiative and the gradual release of overseas business performance, leading to improved operational quality despite falling oil prices [2] - CNOOC's oil service subsidiary reported a 23.3% year-on-year increase in net profit attributable to shareholders, while other companies like Haiyou Development and Haiyou Engineering saw net profit changes of +13.1% and -8.2% respectively, with the latter experiencing a 27% increase in gross profit [2] - The annualized ROE for CNOOC's oil service companies in the first half of 2025 showed resilience, with CNOOC at +1.5 percentage points compared to the full year of 2024, indicating a potential improvement in international competitiveness [2] Group 3: Market Performance - As of January 13, 2026, the National Petroleum and Natural Gas Index (399439) rose by 0.81%, with significant increases in stocks such as CNOOC's oil service (+6.03%) and China National Petroleum (+3.57%) [3] - The oil and gas ETF (159697) increased by 1.15%, reflecting a four-day consecutive rise, with the latest price reported at 1.23 yuan and a net subscription of 15 million units [3] - The top ten weighted stocks in the National Petroleum and Natural Gas Index account for 67.11% of the index, including major players like China National Petroleum, Sinopec, and CNOOC [3]

Summary of Key Points Core Viewpoint - The Jilin City Market Supervision Administration conducted a quality supervision inspection of 226 batches of products from 157 manufacturing enterprises, revealing one batch of non-compliant products [2]. Group 1: Inspection Results - A total of 226 batches of products were inspected, with only one batch found to be non-compliant [2]. - The inspection covered various products including cables, cement, food-related products, and fuel oil [2]. Group 2: Compliance Details - The non-compliant product has been handed over to local market supervision authorities for legal processing [2]. - The majority of inspected products, particularly fertilizers from companies like Jilin Henglong Fertilizer Co., Ltd., were found to be compliant with quality standards [3][4]. Group 3: Product Categories - The inspected products included controlled-release mixed fertilizers, mixed fertilizers, and various types of coatings [3][4][5]. - Specific product specifications and compliance results were documented, indicating a high level of compliance across multiple categories [3][4][5]. Group 4: Future Implications - The results of this inspection may influence future regulatory actions and quality assurance measures within the manufacturing sector in Jilin City [2]. - Continuous monitoring and inspections are likely to be emphasized to maintain product quality standards [2].

Core Viewpoint - The A-share market shows a mixed trend with the oil and gas sector experiencing significant inflows and price increases, particularly in the oil and gas ETF Huatai (159309), which reached a new high since its listing [1] Group 1: Market Performance - As of 13:38, the oil and gas ETF Huatai (159309) rose by 1.98%, hitting a new intraday high and attracting over 3.6 million yuan in capital [1] - The oil and gas sector saw most component stocks rise, with China National Offshore Oil Corporation (CNOOC) increasing over 3% and China Petroleum & Chemical Corporation (Sinopec) rising over 1% [5] Group 2: Geopolitical Factors - Concerns over the situation in Iran are supporting oil prices, with crude oil futures stabilizing near a one-month high [2] - Citic Futures indicates that geopolitical disturbances are likely to drive oil prices higher in the short term, despite a current oversupply in the global oil market [3] Group 3: Supply and Demand Dynamics - The OPEC+ group has decided to maintain its oil production levels, reflecting a desire to balance oil prices amid geopolitical tensions [4] - The International Energy Agency (IEA) projects a global oil demand increase of 860,000 barrels per day in 2026, with chemical feedstock demand expected to dominate this growth [6] Group 4: Investment Insights - The oil and gas sector is showing signs of recovery, with high dividend characteristics making it attractive for investors [6] - The oil and gas ETF Huatai (159309) focuses on the oil and gas industry chain, presenting long-term investment value amid external uncertainties [7]

Industry Investment Rating - The industry investment rating is "Outperform" and is maintained [2] Core Views - The basic chemical industry index closed at 4569.80 points, up 4.21% from last week, outperforming the CSI 300 index by 2.35% [17] - Among the 25 sub-industries in the chemical sector, all showed gains, with inorganic salts, modified plastics, synthetic resins, and chlor-alkali leading the way with weekly increases of 10.92%, 9.94%, 7.87%, and 7.60% respectively [18][19] - A total of 462 stocks in the chemical sector saw 400 stocks rise (87%) and 57 stocks fall (12%) during the week [21] Summary by Relevant Sections Weekly Chemical Market Overview - The basic chemical industry index rose to 4569.80 points, marking a 4.21% increase compared to the previous week, and outperformed the CSI 300 index by 2.35% [17] - The weekly performance of 25 sub-industries showed no declines, with significant gains in inorganic salts and modified plastics [18][19] Chemical Product Price Trends - Among 380 tracked chemical products, 89 saw price increases while 70 experienced declines [24] - The top ten products with the highest price increases included lithium manganate and lithium battery electrolytes, with increases ranging from 7% to 22% [25] - Conversely, the top ten products with the largest price declines included vitamin VD3 and lithium hexafluorophosphate, with declines ranging from 4% to 13% [26] Key Chemical Sub-Industry Tracking - The polyester filament market remained stable, with average prices for POY, FDY, and DTY showing slight declines [27] - The average industry operating rate for polyester filament was approximately 88.11%, with some facilities undergoing maintenance [28] - The average processing margin for polyester products indicated a slight improvement in profitability compared to the previous week [29] Tire Industry Insights - The operating rates for the full steel tire industry decreased to 55.50%, while the semi-steel tire industry dropped to 63.78% [38] - Export volumes from major tire companies in Southeast Asia showed significant year-on-year declines [39] - The average price of styrene-butadiene rubber increased by approximately 2.45% during the week [40] Refrigerant Market Overview - The R22 refrigerant market remained weak, with prices stabilizing at low levels due to cautious market sentiment [47] - In contrast, the R134a refrigerant market continued to rise, with major producers increasing prices amid tight supply conditions [48]

Group 1 - The core viewpoint of the article highlights that southbound funds have increased their holdings in China National Offshore Oil Corporation (CNOOC) by 8.018 million shares on January 12, with a total net increase of 47.6015 million shares over the past five trading days [1] - Over the last 20 trading days, there have been 11 days of net reductions in holdings by southbound funds, totaling 29.687 million shares [1] - As of now, southbound funds hold 10.25 billion shares of CNOOC, accounting for 21.56% of the company's total issued ordinary shares [1] Group 2 - CNOOC is primarily engaged in the exploration, development, production, and sales of crude oil and natural gas [1] - The company operates through three segments: exploration and production, trading, and business management [1] - The exploration and production segment focuses on upstream oil activities, including conventional oil and gas, shale oil and gas, oil sands, and other unconventional oil and gas operations [1]

Investment Rating - The report maintains a neutral outlook on the oil and chemical industry for 2026, with specific recommendations for various companies based on their performance and market conditions [10]. Core Insights - OPEC+ has decided to continue its production cuts, with a focus on cautious and flexible adjustments based on market conditions. The group has reaffirmed its commitment to compensate for overproduction since January 2024, which is expected to support oil prices in the short term [2][5]. - The downstream polyester sector is tightening in supply and demand, with expectations for improvement in market conditions. Key recommendations include high-quality companies in polyester filament and bottle-grade materials [10]. - The report highlights that oil prices are expected to stabilize, with a limited downside, and suggests focusing on companies with strong dividend yields and improving operational quality [10]. Summary by Sections OPEC+ Production Plans - OPEC+ has confirmed a pause in its planned production increase of 1.65 million barrels per day for February and March 2026 due to seasonal demand weakness. The group emphasizes the need for full compensation for overproduction since January 2024 [2][5]. - The actual production for Q1 2026 is expected to be lower than nominal quotas, with adjustments in compensation plans leading to a reduction of 0.1-0.2 million barrels per day compared to nominal quotas [5]. Price Trends - As of January 9, 2026, Brent crude oil futures closed at $63.34 per barrel, reflecting a week-on-week increase of 4.26%. WTI futures rose to $59.12 per barrel, up 3.14% [14]. - The report notes that the average price for Brent and WTI for the week was $61.55 and $57.66 per barrel, respectively, indicating slight fluctuations in the market [14]. Company Recommendations - The report recommends focusing on high-quality companies in the polyester sector, such as Tongkun Co. and Wankai New Materials, as well as major refining companies like Hengli Petrochemical and Rongsheng Petrochemical, which are expected to benefit from improved cost structures and competitive advantages [10]. - It also highlights the offshore oil service sector, suggesting continued optimism for companies like CNOOC Services and Haiyou Engineering due to high capital expenditures in offshore exploration [10]. Market Dynamics - The report indicates that the U.S. oil production for January 2, 2026, was 13.81 million barrels per day, showing a slight decrease from the previous week but a year-on-year increase of 330,000 barrels per day [23]. - The number of active oil rigs in the U.S. decreased to 544, down 2 from the previous week and down 40 year-on-year, indicating a potential slowdown in exploration activities [25]. Valuation Metrics - The report provides a valuation table for key companies in the oil and chemical sector, detailing market capitalization, earnings per share (EPS), and price-to-earnings (PE) ratios for companies like China National Petroleum and Hengli Petrochemical [11].

Investment Rating - The report maintains a positive outlook on the oil and petrochemical industry, indicating a favorable investment rating due to clear short-term support from the oil supply side [2][3]. Core Insights - OPEC+ continues to pause production increases, with a focus on compensating for overproduction since January 2024, which strengthens short-term supply support [2][3]. - The upstream sector is experiencing rising oil prices, while day rates for self-elevating drilling rigs are declining, indicating a mixed outlook for drilling services [2][13]. - The refining sector shows a decrease in overseas refined oil crack spreads, while olefin spreads are increasing, suggesting a potential improvement in refining profitability [2][47]. - The polyester sector is witnessing a decline in PTA profitability but an increase in polyester filament profitability, indicating a need for close monitoring of demand changes [2][10]. Summary by Sections Upstream Sector - Brent crude oil futures closed at $63.34 per barrel, up 4.26% week-on-week, while WTI futures rose 3.14% to $59.12 per barrel [13]. - U.S. commercial crude oil inventories decreased by 3.83 million barrels to 419 million barrels, which is 3% lower than the five-year average [14]. - The number of active U.S. drilling rigs decreased to 544, down 2 rigs from the previous week and down 40 rigs year-on-year [27]. Refining Sector - The Singapore refining margin for major products was $11.04 per barrel, down $4.15 from the previous week [49]. - The U.S. gasoline RBOB-WTI spread increased to $15.4 per barrel, up $1.3 from the previous week, but still below the historical average of $24.5 per barrel [52]. - The olefin sector shows a positive trend with an increase in the ethylene-crude oil spread, indicating potential profitability improvements [57]. Polyester Sector - PTA prices have declined, with the average price in East China at 5069.25 CNY per ton, down 0.75% week-on-week [2]. - The polyester filament POY spread increased to 905 CNY per ton, up 17 CNY from the previous week, indicating a slight improvement in profitability [2][10]. - The overall performance of the polyester industry is average, with expectations for gradual improvement as new capacity comes online [2][10]. Investment Recommendations - The report recommends focusing on high-quality companies in the polyester sector, such as Tongkun Co. and Wankai New Materials, due to tightening supply and demand conditions [10]. - It suggests monitoring large refining companies like Hengli Petrochemical and Rongsheng Petrochemical, which may benefit from improved cost structures and competitive advantages [10]. - The upstream exploration and development sector remains robust, with recommendations for offshore oil service companies like CNOOC Services and Offshore Engineering [10].

Market Overview - The Shanghai Composite Index rose by 1.09% on January 12, with 28 out of the 31 sectors experiencing gains, led by the Media and Computer sectors, which increased by 7.80% and 7.26% respectively [2] - The Oil and Petrochemical sector was the biggest loser, declining by 1.00%, followed by Coal and Real Estate, which fell by 0.47% and 0.29% respectively [2] Capital Flow Analysis - The main capital outflow from the two markets totaled 27.468 billion yuan, with 11 sectors seeing net inflows [2] - The Computer sector had the highest net inflow of capital, amounting to 15.774 billion yuan, while the Media sector followed with a net inflow of 5.391 billion yuan [2] Oil and Petrochemical Sector Details - The Oil and Petrochemical sector saw a net outflow of 833.5 million yuan, with 47 stocks in the sector; 16 stocks rose while 28 fell [3] - Among the stocks with net inflows, China Petroleum had the highest at 56.8917 million yuan, followed by Runbei Hangke and Guanghui Energy with inflows of 23.7265 million yuan and 19.5017 million yuan respectively [3][5] - The stocks with the largest net outflows included Hengli Petrochemical, with an outflow of 144.7569 million yuan, followed by Intercontinental Oil and Tongyuan Petroleum with outflows of 105.274 million yuan and 92.8059 million yuan respectively [3] Individual Stock Performance - Hengli Petrochemical decreased by 2.37% with a turnover rate of 0.49% and a net outflow of 144.7569 million yuan [3] - Intercontinental Oil increased by 2.56% with a significant turnover rate of 19.53%, but still experienced a net outflow of 105.274 million yuan [3] - China Petroleum saw a decline of 3.08% with a turnover rate of 0.45% and a net inflow of 56.8917 million yuan [5]