Core Viewpoint - The China Securities Index for domestic resources has shown positive performance, with a recent increase in value and significant year-to-date growth, indicating a favorable market trend for resource-related stocks [1]. Group 1: Index Performance - The China Securities Index for domestic resources rose by 0.29% to 3511.13 points, with a trading volume of 35.435 billion yuan [1]. - Over the past month, the index has increased by 1.37%, by 5.59% over the last three months, and by 5.12% year-to-date [1]. Group 2: Index Composition - The top ten holdings in the China Securities Index for domestic resources are: Zijin Mining (15.56%), China Shenhua (6.62%), China Petroleum (5.46%), China Petrochemical (4.52%), Northern Rare Earth (4.1%), Shaanxi Coal and Chemical (3.98%), China National Offshore Oil (3.32%), Luoyang Molybdenum (3.07%), China Aluminum (3.06%), and Shandong Gold (2.99%) [1]. - The index is primarily composed of the materials sector (68.47%) and the energy sector (31.53%) [2]. Group 3: Market Structure - The Shanghai Stock Exchange accounts for 78.58% of the index's holdings, while the Shenzhen Stock Exchange represents 21.42% [1]. - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2]. Group 4: Related Funds - Public funds tracking the domestic resources index include Minsheng Jianyin China Securities Domestic Resources C and Minsheng Jianyin China Securities Domestic Resources A [3].

Investment Rating - The investment rating for the industry is "Positive" [2]. Core Insights - Qatar has significant natural gas resources, with proven reserves of 24.7 trillion cubic meters, accounting for 13.1% of global reserves, ranking third worldwide. Qatar's LNG export capacity is expected to double by 2030, with an annualized growth rate of 13% anticipated from 2025 to 2030 [4][11]. - Qatar's production costs are extremely low, with extraction costs ranging from $0.3 to $0.5 per million British thermal units (MMBtu) and liquefaction costs around $1.8 per MMBtu, making it one of the most competitive suppliers globally [4][43]. - The majority of Qatar's LNG exports are secured through long-term contracts, primarily targeting the Asian and European markets, which could lead to downward pressure on spot prices if global demand weakens [4][52]. Summary by Sections 1. Qatar's Natural Gas Resource Endowment - Qatar's natural gas reserves are substantial, with a stable production rate. As of 2024, Qatar's natural gas production is projected to be 179.45 billion cubic meters, representing 4.35% of global production [11][30]. - A new wave of capacity expansion is expected from 2026 to 2030, with over 60 million tons of liquefaction capacity anticipated to come online, potentially doubling Qatar's LNG export capacity [4][30]. 2. Low-Cost Competitive Advantage - Qatar's gas field production costs are significantly lower than those of other major producers, with extraction costs at $0.3 to $0.5 per MMBtu, compared to $0.5 to $1 for Russia and $1.6 to $3.1 for the U.S. [43][44]. - The liquefaction cost for Qatar's LNG is approximately $1.8 per MMBtu, positioning it favorably in the global market [48]. 3. Qatar LNG Pricing Model - Qatar's LNG exports are primarily directed towards Asia and Europe, with 80% and 14% of exports respectively in 2024. Long-term contracts dominate the sales model, with over 90% of existing capacity locked in [52][58]. - The pricing of Qatar's long-term contracts is linked to oil prices, with a competitive edge when oil prices are below $70 per barrel [67]. 4. High Long-Term Contract Volumes from Chinese Enterprises - Chinese companies have secured significant long-term contracts with Qatar, totaling 15.9 million tons per year, with additional investments locking in 11 million tons per year expected to be released between 2026 and 2027 [4][64]. 5. Investment Strategy - Qatar is undergoing a large-scale expansion of its LNG capacity, with expectations of a 61% increase in export capacity by 2030. The low extraction and liquefaction costs position Qatar as a key player in the global LNG market [4][30]. - The report suggests focusing on domestic gas companies that have secured advantageous gas sources and diversified supply pools, particularly in a potential downtrend in global gas prices [4][36].

Core Insights - The "Deep Sea No. 1" Phase II project has achieved full production, marking it as the largest offshore gas field in China with a maximum daily output of 15 million cubic meters [2][4] - This gas field is notable for being the deepest and most challenging to develop in terms of geological conditions, with 12 underwater wells exceeding 60,000 meters in total depth, temperatures reaching 138 degrees Celsius, and pressures up to 69 MPa [4][6] - The successful completion of the project is a significant milestone for China's deep-water high-pressure gas development, positioning the country among global leaders in this field [6][9] Production Capacity and Technical Challenges - The "Deep Sea No. 1" gas field consists of 23 underwater gas wells, all operational, contributing to a projected annual gas output of over 4.5 billion cubic meters [2][9] - The project faced extreme geological challenges, including high temperature and pressure, requiring innovative solutions and extensive research to ensure safe and efficient drilling operations [4][7] - The development of the underwater production system involved complex equipment and technology, with a focus on optimizing production management and simulating various operational scenarios [4][5] Technological Innovations and Achievements - The project has led to the creation of five world-first key technologies for drilling high-pressure wells, enhancing operational efficiency by over 30% [9] - A significant achievement includes the successful development of domestically produced high-density completion fluids, which saved nearly 100 million yuan in operational costs [7][9] - The establishment of a complete technical system for deep-water gas field development is expected to facilitate the economic and efficient development of other complex offshore oil and gas reserves in the future [10] Strategic Importance - The "Deep Sea No. 1" gas field is crucial for China's energy supply, with marine oil and gas production becoming a primary focus, accounting for approximately 80% of the national crude oil increase in 2024 [6][10] - The gas produced will support industrial and residential users in the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan Free Trade Port, integrating into the national gas pipeline network [9][10]

Investment Rating - The report maintains a "Buy" rating for several companies including Xin Yang Feng, Sen Qi Lin, Rui Feng New Material, Sinopec, Ju Hua Co., Yang Nong Chemical, China National Offshore Oil Corporation, and others [10]. Core Views - The report suggests focusing on investment opportunities in areas such as import substitution, pure domestic demand, and high dividend yields due to the recent fluctuations in chemical product prices and international oil prices [6][8]. - The chemical industry is currently experiencing a mixed performance, with some products seeing price increases while others are declining, indicating a weak overall industry performance [22][23]. Summary by Sections Market Performance - The basic chemical sector has shown a performance increase of 19.5% over the past 12 months, outperforming the Shanghai Composite Index which increased by 15.6% [2]. - Recent price movements include significant increases in PS (up 9.26%) and potassium chloride (up 7.41%), while hydrochloric acid saw a decline of 21.17% [20][21]. Price Trends - The report highlights that while some chemical products have rebounded in price, the overall industry remains under pressure due to weak demand and recent capacity expansions [22][23]. - Specific recommendations include focusing on the glyphosate industry, which is expected to enter a favorable cycle, and selecting stocks with strong competitive positions and growth potential [8][22]. Oil Price Impact - International oil prices have been fluctuating, with Brent crude at $70.36 per barrel and WTI at $68.45 per barrel, both showing increases from the previous week [6][20]. - The report anticipates that the average oil price will stabilize between $65 and $70 per barrel in 2025, which could influence the performance of companies in the oil sector [6][20]. Company Recommendations - The report recommends specific companies such as Jiangshan Co., Xingfa Group, and Yangnong Chemical for their potential to benefit from the expected recovery in the glyphosate market [8]. - It also highlights the attractiveness of high dividend yield companies like Sinopec and China National Offshore Oil Corporation in the current market environment [6][8].

Core Insights - China National Offshore Oil Corporation (CNOOC) Shenzhen branch successfully completed the offshore installation of the upper module of the Xijiang 24-7 platform on July 14, marking the beginning of a new phase in joint debugging for the platform [1][2] - The Xijiang 24-7 platform represents a significant advancement in the application of unmanned platform technology, showcasing improvements in digitalization, production processing capacity, operational costs, and safety [1] - The project is part of CNOOC's efforts to drive the digital transformation of offshore oil fields, with the average water depth in the area being approximately 90 meters [1] Project Details - The upper module of the Xijiang 24-7 platform weighs approximately 3,310 tons and consists of a two-layer deck structure, with the main deck measuring 36.3 meters in length and 36.1 meters in width, equivalent to the area of three basketball courts [1] - The platform is designed to utilize multiple digital technologies, enabling functions such as intelligent oil extraction, smart equipment operation, and intelligent security [1] Installation Challenges - The installation occurred during a season prone to severe weather, including typhoons and strong convective conditions, necessitating careful planning and resource management to mitigate the impact of Typhoon 'Danas' [2] - The project team implemented innovative guiding devices and positioning spikes to ensure precision during the installation, achieving an overall alignment error of less than 1 millimeter [2] Production Performance - In the first half of the year, the eastern South China Sea oil fields exceeded production targets for both crude oil and natural gas, focusing on maximizing output and efficiency [2] - New projects adhered to the principle of "land-based support for sea operations" and enhanced resource coordination, with simultaneous construction of multiple platforms in Zhuhai and Qingdao [2]

Market Overview - The Shanghai Composite Index rose by 0.27% on July 14, with 21 out of the 28 sectors in the Shenwan classification experiencing gains, led by the machinery equipment and public utilities sectors, which increased by 1.23% and 1.04% respectively [1] - The oil and petrochemical sector saw an increase of 0.86% with a net inflow of 91.1 million yuan in main funds [1] Oil and Petrochemical Sector - Within the oil and petrochemical sector, 28 out of 47 stocks rose, with one stock hitting the daily limit up, while 17 stocks declined [1] - The top three stocks with the highest net inflow of funds were China National Petroleum Corporation (2.55 billion yuan), Sinopec (960.7 million yuan), and China National Offshore Oil Corporation (848.6 million yuan) [1] - The stocks with the largest net outflow included Guanghui Energy (1.11 billion yuan), *ST Xinchao (432.4 million yuan), and Guangju Energy (392.7 million yuan) [1] Fund Flow Analysis - The top stocks by main fund flow in the oil and petrochemical sector included: - China National Petroleum Corporation: +2.66% with a turnover rate of 0.13% and a main fund flow of 254.5 million yuan - Sinopec: +1.05% with a turnover rate of 0.15% and a main fund flow of 96.1 million yuan - China National Offshore Oil Corporation: +0.58% with a turnover rate of 0.98% and a main fund flow of 84.9 million yuan [1] - Several stocks experienced significant net outflows, including: - Guanghui Energy: -1.11 billion yuan - *ST Xinchao: -432.4 million yuan - Guangju Energy: -392.7 million yuan [2]

Investment Strategy - Crude oil supply is expected to remain limited due to declining global oil and gas capital expenditures, with a significant reduction of nearly 122% from 2014 levels to $351 billion in 2021 [9][30][31] - Geopolitical tensions, particularly the Russia-Ukraine conflict, have exacerbated concerns over energy supply, with the EU planning to reduce oil imports from Russia by 90% by the end of 2022 [10][31] - Brent crude oil prices increased to $71.97 per barrel, up 2.95% week-on-week, while WTI prices rose to $67.93 per barrel, up 2.46% [11][32] Coal Industry - The average market price for Qinhuangdao port thermal coal (Q5500) rose to 628 RMB/ton, a 1.06% increase from the previous week, driven by improved demand and trading conditions [12][13] - Coal production is gradually recovering, with total inventory at ports reported at 26.9 million tons, down 2.46% week-on-week, indicating a tightening supply [12][13] - The domestic coal consumption for key power plants increased to 4.88 million tons per day, a 6.09% rise from the previous week, reflecting higher electricity demand due to ongoing high temperatures [12][13] Coking Coal - Coking coal prices have seen a slight increase, with the price for Shanxi main coking coal at 1,350 RMB/ton, up 9.76% week-on-week, as supply conditions improve [14][15] - The overall supply-demand situation for coking coal is improving, with increased orders from steel mills and a decrease in inventory levels [14][15] Natural Gas - The EIA projects that U.S. natural gas production and consumption will reach record highs in 2025, with expected consumption of 91.4 billion cubic feet per day [16][17] - U.S. natural gas prices decreased to $3.33 per million British thermal units, down 2.9% from the previous week, while European gas prices increased [16][17] - The EU has reached an agreement on a natural gas price cap, which may lead to liquidity issues and potential supply shortages [17] Oilfield Services - The oilfield services sector is experiencing a recovery in demand due to increased capital expenditures from major oil companies, which are projected to reach 581.738 billion RMB in 2023, reflecting a compound annual growth rate of 6% since 2018 [18][19] - The number of active drilling rigs globally decreased to 1,576, with a notable decline in the Middle East and the U.S. [19]

Investment Rating - The report maintains an "Outperform" rating for the basic chemical industry [2] Core Viewpoints - The basic chemical sector has shown better performance than the market, with a year-to-date increase of 8.9%, outperforming the Shanghai Composite Index by 4.2 percentage points [4][16] - The global potash market is characterized by oligopoly, with major producers controlling supply and prices. Recent production cuts by key players are expected to sustain potash market conditions [5][27] - Phosphate supply remains tight, with stable prices and potential improvements in export opportunities as demand increases [5][27] Summary by Sections 1. Core Viewpoints - Policies are expected to improve supply-demand dynamics in the chemical sector, with a focus on cyclical investment opportunities [13] - The chemical industry is entering a new long-term prosperity cycle, driven by improved fundamentals and reduced risks [13][14] 2. Overall Performance of the Chemical Sector - The basic chemical industry index increased by 1.5% during the week, outperforming the Shanghai Composite Index by 0.4 percentage points [16] - Year-to-date, the basic chemical industry index has increased by 8.9%, significantly outperforming both the Shanghai Composite and ChiNext indices [16][18] 3. Individual Stock Performance in the Chemical Sector - Among 424 stocks in the basic chemical sector, 298 stocks rose while 123 fell during the week [25] - The top performers included companies like Shangwei New Materials (+72.9%) and Hongbo New Materials (+24.7%) [25][26] 4. Key News and Company Announcements - The autumn fertilizer preparation has begun, with a focus on investment opportunities in potash and phosphate fertilizers [27] - Major potash producers have announced production cuts, which are expected to tighten supply and support prices [5][27] - Phosphate prices remain stable, with potential for improved export conditions as demand increases [5][27] 5. Product Price Changes - The report highlights significant price increases in various chemical products, with notable gains in dimethylamine (+16.7%) and fatty alcohol (+8.2%) [6] - Conversely, urea prices have seen a significant decline (-15%) [6]

Investment Rating - The report maintains a positive outlook on the petrochemical industry, highlighting potential recovery in polyester and refining sectors [2][14]. Core Insights - The EIA has revised down its natural gas price forecasts due to rising inventories, with the third-quarter price expected at $3.37 per million British thermal units (MMBtu) and the fourth quarter at $3.99 MMBtu [2][3]. - U.S. natural gas inventories reached 30,060 billion cubic feet, significantly above the five-year average, indicating a clear accumulation trend [6]. - Oil prices have shown an upward trend, with Brent crude futures closing at $70.36 per barrel, reflecting a 3.02% increase week-over-week [18]. - The report anticipates a downward adjustment in oil prices due to widening supply-demand dynamics, although OPEC production cuts and shale oil cost support may maintain prices at mid-high levels [2][18]. Summary by Sections Natural Gas Market - The EIA has lowered its natural gas price forecasts for Q3 and Q4 2025, with average prices expected at $3.67 and $4.41 per MMBtu for 2025 and 2026, respectively [2][3]. - U.S. natural gas production reached 11.68 billion cubic feet per day in Q2 2025, a year-on-year increase of 4.7 billion cubic feet per day [6]. - Solar power is increasingly substituting natural gas in electricity generation, with a projected 3% decline in gas-fired generation in 2025 [11]. Upstream Sector - Brent crude oil prices increased to $70.36 per barrel, while WTI prices rose to $68.45 per barrel, with weekly average prices showing gains of 2.34% and 2.44%, respectively [18]. - U.S. commercial crude oil inventories rose to 426 million barrels, with gasoline inventories decreasing to 229 million barrels [19]. - The number of active drilling rigs in the U.S. decreased to 537, down 2 from the previous week and 47 year-on-year [29]. Refining Sector - The Singapore refining margin for major products decreased to $13.70 per barrel, reflecting a decline of $0.31 per barrel week-over-week [50]. - The report notes that refining profitability is expected to improve as oil prices adjust downward, with domestic refining product margins still at low levels [48]. Polyester Sector - The report highlights a recovery expectation in the polyester sector, with improved profitability anticipated as supply-demand dynamics stabilize [14]. - Key companies to watch include Tongkun Co. and Wankai New Materials, which are expected to benefit from this recovery [14]. Investment Recommendations - The report recommends focusing on leading refining companies such as Hengli Petrochemical, Rongsheng Petrochemical, and Sinopec, which are expected to benefit from improved competitive dynamics [14]. - It also suggests monitoring companies in the upstream exploration and production sector, particularly offshore oil service firms like CNOOC Services and Offshore Oil Engineering, which are projected to see performance improvements [14].

1. Report Industry Investment Rating Not provided in the content 2. Core Viewpoints of the Report - This week, the average weekly prices of Brent/WTI crude oil futures were $69.8/$67.9 per barrel, up $1.6/$1.6 from last week [2]. - The total US crude oil inventory, commercial crude oil inventory, strategic crude oil inventory, and Cushing crude oil inventory were 8.3/4.3/4.0/0.2 billion barrels respectively, with a week - on - week increase of 731/707/24/46 thousand barrels [2]. - US crude oil production was 13.39 million barrels per day, a week - on - week decrease of 50 thousand barrels per day. The number of active US crude oil rigs this week was 424, a week - on - week decrease of 1. The number of active US fracturing fleets this week was 176, a week - on - week increase of 4 [2]. - US refinery crude oil processing volume was 17.01 million barrels per day, a week - on - week decrease of 100 thousand barrels per day; the US refinery crude oil utilization rate was 94.7%, a week - on - week decrease of 0.2 percentage points [2]. - US crude oil imports, exports, and net imports were 6.01/2.76/3.26 million barrels per day, with a week - on - week change of - 910 thousand/+450 thousand/ - 1.36 million barrels per day [2]. - The average weekly prices of US gasoline, diesel, and jet fuel were $91/$102/$90 per barrel respectively, with a week - on - week change of +$2.9/+$2.1/ - $4.1. The price spreads with crude oil were $21/$32/$20 per barrel respectively, with a week - on - week change of +$1.2/+$0.4/ - $5.8 [2]. - US gasoline, diesel, and aviation kerosene inventories were 2.3/1.0/0.4 billion barrels respectively, with a week - on - week decrease of 266/83/91 thousand barrels [2]. - US gasoline, diesel, and aviation kerosene production were 9.9/5.09/1.96 million barrels per day respectively, with a week - on - week increase of 280 thousand/60 thousand/40 thousand barrels per day [2]. - US gasoline, diesel, and aviation kerosene consumption were 9.9/5.09/1.96 million barrels per day respectively, with a week - on - week increase of 280 thousand/60 thousand/40 thousand barrels per day [2]. - US gasoline imports, exports, and net exports were 130 thousand/1.04 million/910 thousand barrels per day respectively, with a week - on - week change of - 40 thousand/+260 thousand/+300 thousand barrels per day. US diesel imports, exports, and net exports were 40 thousand/1.59 million/1.54 million barrels per day respectively, with a week - on - week change of - 80 thousand/+230 thousand/+310 thousand barrels per day. US aviation kerosene imports, exports, and net exports were 80 thousand/250 thousand/170 thousand barrels per day respectively, with a week - on - week change of +10 thousand/+80 thousand/+70 thousand barrels per day [2]. - Recommended companies include CNOOC Limited (600938.SH/0883.HK), PetroChina Company Limited (601857.SH/0857.HK), Sinopec Corp. (600028.SH/0386.HK), CNOOC Oilfield Services Limited (601808.SH), Offshore Oil Engineering Co., Ltd. (600583.SH), and CNOOC Energy Technology & Services Limited (600968.SH). Companies to be noted include Sinopec Oilfield Service Corporation (600871.SH/1033.HK), China Petroleum Engineering & Construction Corporation (600339.SH), and Sinopec Mechanical & Electrical Equipment Co., Ltd. (000852.SZ) [3]. 3. Summary by Directory 1. Crude Oil Weekly Data Briefing - Data sources include Bloomberg, WIND, EIA, TSA, Baker Hughes, and Dongwu Securities Research Institute [8][9] 2. This Week's Petroleum and Petrochemical Sector Market Review 2.1 Petroleum and Petrochemical Sector Performance - Information on the performance of the petroleum and petrochemical sector, including the rise and fall of various sub - industries and the trend of the sector and the CSI 300 index, with data sources from WIND and Dongwu Securities Research Institute [11][18] 2.2 Sector Listed Company Performance - The table shows the rise and fall of major upstream companies in the sector, including companies such as CNOOC Limited, PetroChina Company Limited, and Sinopec Corp., with data sources from WIND and Dongwu Securities Research Institute [22][23] - The valuation table of listed companies shows the stock price, total market value, net profit attributable to the parent company, PE, and PB of companies such as CNOOC Limited, PetroChina Company Limited, and Sinopec Corp. from 2024A to 2027E, with data sources from Wind and Dongwu Securities Research Institute [24] 3. Crude Oil Sector Data Tracking 3.1 Crude Oil Price - Analyzes the prices and price spreads of Brent, WTI, Urals, ESPO crude oil, etc., as well as the relationship between the US dollar index, copper price, and WTI crude oil price, with data sources from WIND and Dongwu Securities Research Institute [26][29] 3.2 Crude Oil Inventory - Studies the relationship between US commercial crude oil inventory and oil prices, the weekly destocking speed of US commercial crude oil and the rise and fall of Brent oil, and the inventory of US total crude oil, commercial crude oil, strategic crude oil, and Cushing crude oil, with data sources from WIND and Dongwu Securities Research Institute [44][45] 3.3 Crude Oil Supply - Analyzes US crude oil production, the number of US crude oil rigs, and the number of fracturing fleets and their relationship with oil prices, with data sources from WIND and Dongwu Securities Research Institute [57][58] 3.4 Crude Oil Demand - Analyzes US refinery crude oil processing volume, refinery utilization rate, and Shandong refinery utilization rate, with data sources from WIND and Dongwu Securities Research Institute [61][63] 3.5 Crude Oil Import and Export - Analyzes US crude oil import, export, and net import volume, as well as the import, export, and net import volume of US crude oil and petroleum products, with data sources from WIND and Dongwu Securities Research Institute [66][68] 4. Refined Oil Sector Data Tracking 4.1 Refined Oil Price - Analyzes the prices and price spreads of crude oil and domestic/US/European/Singapore gasoline, diesel, and aviation kerosene, as well as the domestic gasoline and diesel wholesale - retail price spreads, with data sources from WIND and Dongwu Securities Research Institute [73][76] 4.2 Refined Oil Inventory - Analyzes the inventory of US gasoline, diesel, aviation kerosene, and Singapore gasoline and diesel, with data sources from WIND and Dongwu Securities Research Institute [99][100] 4.3 Refined Oil Supply - Analyzes US gasoline, diesel, and aviation kerosene production, with data sources from WIND and Dongwu Securities Research Institute [115][116] 4.4 Refined Oil Demand - Analyzes US gasoline, diesel, and aviation kerosene consumption and the number of US passenger airport security checks, with data sources from WIND and Dongwu Securities Research Institute [117][118] 4.5 Refined Oil Import and Export - Analyzes US gasoline, diesel, and aviation kerosene import, export, and net export volume, with data sources from WIND and Dongwu Securities Research Institute [126][127] 5. Oilfield Services Sector Data Tracking - Analyzes the average daily fees of self - elevating drilling platforms and semi - submersible drilling platforms in the industry, with data sources from WIND and Dongwu Securities Research Institute [139][141]