EBSCN·2025-06-29 13:44Investment Rating - The report maintains an "Overweight" rating for the petrochemical industry [6] Core Views - Geopolitical risks in the Middle East have eased, leading to a decline in oil prices, with Brent and WTI crude oil prices reported at $66.34 and $65.07 per barrel respectively, down 12.5% and 12.1% from the previous week [1] - The ongoing geopolitical tensions, particularly regarding Iran's nuclear program and conflicts involving Israel and Palestine, continue to pose significant risks to oil prices [2] - OPEC+ is expected to continue its large-scale production increase plans, with a focus on monitoring the execution of these plans [3] - Potential mergers and acquisitions in the energy sector, particularly the discussions between Shell and BP, could accelerate consolidation in the overseas energy market [4] - The long-term outlook for oil supply and demand remains positive, with a focus on major Chinese oil companies and the oil service sector, as well as chemical product demand recovery driven by macroeconomic factors [5] Summary by Sections Geopolitical Risks - The easing of Middle Eastern geopolitical tensions has resulted in a significant drop in oil prices, returning to levels prior to the Israel-Iran conflict [1] - Despite the ceasefire, the underlying issues related to Iran's nuclear program remain unresolved, indicating ongoing geopolitical risks [2] OPEC+ Production Plans - OPEC+ is preparing to consider further production increases in its upcoming meeting, with a notable increase of 411,000 barrels per day agreed upon by eight member countries [3] Mergers and Acquisitions - Shell is reportedly in preliminary talks to acquire BP, which could lead to the largest energy sector merger since the Exxon-Mobil deal in 1999 [4] Investment Recommendations - The report suggests a continued positive outlook for major Chinese oil companies and oil service firms, as well as for the petrochemical sector driven by recovering demand [5]