Investment Rating - The report maintains a "Positive" investment rating for the oil processing industry [1]. Core Insights - The international oil prices experienced a rebound due to geopolitical tensions, particularly involving Venezuela and Iran, with Brent and WTI prices reaching $63.34 and $59.12 per barrel, respectively, as of January 11, 2026 [2][9]. - The report highlights a significant increase in U.S. crude oil imports, which rose by 27.98% to 6.339 million barrels per day, while exports increased by 23.92% to 4.263 million barrels per day, resulting in a net import increase of 37.21% [47]. - The oil and petrochemical sector showed a mixed performance, with the sector rising by 0.29% while the broader market (CSI 300) increased by 2.79% [10]. Summary by Sections Oil Price Review - As of January 9, 2026, Brent crude futures settled at $63.34 per barrel, up $2.59 (+4.26%) from the previous week, while WTI crude futures rose to $59.12 per barrel, an increase of $1.80 (+3.14%) [26]. Offshore Drilling Services - The number of global offshore self-elevating drilling rigs remained stable at 376, and floating drilling rigs also held steady at 129 as of January 5, 2026 [32]. Crude Oil Supply - U.S. crude oil production was reported at 13.811 million barrels per day, a decrease of 16,000 barrels from the previous week, with active drilling rigs down to 409 [42]. Crude Oil Demand - U.S. refinery crude processing increased to 16.909 million barrels per day, with a refinery utilization rate of 94.70%, unchanged from the previous week [50]. Crude Oil Inventory - Total U.S. crude oil inventories decreased by 3.587 million barrels (-0.43%) to 833 million barrels as of January 2, 2026, with commercial inventories down by 3.832 million barrels (-0.91%) [62]. Refined Oil Products - As of January 9, 2026, U.S. average prices for diesel, gasoline, and jet fuel were $88.99, $72.69, and $78.96 per barrel, respectively, with varying price changes compared to the previous week [85].

Core Viewpoint - The oil service engineering sector experienced a significant increase of 2.67% on January 9, with Tongyuan Petroleum leading the gains [1] Group 1: Market Performance - The Shanghai Composite Index closed at 4120.43, up 0.92%, while the Shenzhen Component Index closed at 14120.15, up 1.15% [1] - Key stocks in the oil service engineering sector showed notable price increases, with Tongyuan Petroleum rising by 8.96% to a closing price of 6.57 [1] Group 2: Stock Performance - The following stocks had significant price changes: - Tongyuan Petroleum: 8.96% increase, closing at 6.57, with a trading volume of 1.90 million shares and a turnover of 1.227 billion [1] - Keli Co., Ltd.: 7.07% increase, closing at 34.70, with a trading volume of 78,100 shares and a turnover of 267 million [1] - Zhongman Petroleum: 6.03% increase, closing at 24.44, with a trading volume of 223,800 shares and a turnover of 542 million [1] - PetroChina Oilfield Services: 5.91% increase, closing at 2.33, with a trading volume of 3.7243 million shares and a turnover of 859 million [1] Group 3: Capital Flow - The oil service engineering sector saw a net inflow of 161 million from main funds, while retail investors experienced a net outflow of 76.11 million [1] - Specific stock capital flows included: - PetroChina Oilfield Services: net outflow of 66.12 million from main funds and 49.35 million from retail investors [2] - Tongyuan Petroleum: net inflow of 51.98 million from main funds and a net outflow of 42.11 million from retail investors [2] - Keli Co., Ltd.: net inflow of 30.21 million from main funds and a net outflow of 0.72 million from retail investors [2]

Core Viewpoint - The stock of CNOOC Engineering has shown a positive trend with a 7.29% increase year-to-date, reflecting a strong performance in the oil and gas engineering sector [1] Group 1: Stock Performance - On January 9, CNOOC Engineering's stock rose by 2.08%, reaching 5.89 CNY per share, with a trading volume of 385 million CNY and a turnover rate of 1.50% [1] - The stock has increased by 7.29% this year, with a 7.29% rise over the last five trading days, an 8.27% increase over the last 20 days, and a 7.88% increase over the last 60 days [1] Group 2: Financial Performance - For the period from January to September 2025, CNOOC Engineering reported a revenue of 17.661 billion CNY, a year-on-year decrease of 13.54%, and a net profit attributable to shareholders of 1.605 billion CNY, down 8.01% year-on-year [2] - CNOOC Engineering has distributed a total of 7.178 billion CNY in dividends since its A-share listing, with 1.981 billion CNY distributed over the last three years [3] Group 3: Shareholder Information - As of September 30, 2025, the number of shareholders for CNOOC Engineering was 78,900, a decrease of 15.77% from the previous period, while the average circulating shares per person increased by 18.72% to 56,047 shares [2] - The second-largest circulating shareholder is Hong Kong Central Clearing Limited, holding 85.3675 million shares, a decrease of 30.1612 million shares from the previous period [3]

Core Viewpoint - The A-share market experienced an upward trend, significantly boosted by rising oil prices, with the oil and gas sector attracting substantial capital inflows, particularly into the oil and gas ETF Huatai-PineBridge (159309) [1][5] Group 1: Market Performance - As of 10:41, the oil and gas ETF Huatai-PineBridge (159309) saw a peak increase of over 3% before retreating to a current gain of over 1%, with a net inflow of 3.6 million yuan, marking three consecutive days of capital attraction [1] - The main contracts for West Texas Intermediate (WTI) and Brent crude oil rose by 4.3% and 4.57%, respectively, closing at $58.4 and $62.7 per barrel, driven by geopolitical tensions [5] Group 2: Stock Performance - The majority of the index component stocks for the oil and gas ETF experienced gains, with notable increases including Sinopec (China Petroleum & Chemical Corporation) reaching a limit up, and China Merchants Energy rising over 4% [3] - The top ten component stocks of the oil and gas ETF include Sinopec with a 1.65% increase and China National Offshore Oil Corporation (CNOOC) with a 0.88% increase, among others [4] Group 3: Corporate Developments - Sinopec and China National Aviation Fuel Corporation received approval for a merger, which is expected to enhance operational efficiencies and reduce supply costs, thereby promoting high-quality development in the industry [5] - The merger is anticipated to leverage the strengths of both companies in refining and aviation fuel supply, streamlining operations and minimizing intermediaries [5] Group 4: Industry Outlook - The oil sector is experiencing a gradual recovery, with high dividend characteristics becoming prominent, as highlighted by Longjiang Securities, which expects a sustained upward trend in the industry cycle [6] - The geopolitical tensions are prompting a reassessment of Venezuela's role in global oil supply, potentially leading to short-term disruptions but also creating opportunities for risk premium re-evaluation [6]

Group 1 - The State Intellectual Property Office of China shows that CNOOC Engineering Co., Ltd. has applied for a patent titled "A Continuous Water Energy Recovery and Power Generation System for Offshore Platforms," with publication number CN121273514A and application date of October 2025 [1] - The patent abstract indicates that the invention provides a system for recovering and generating power from the kinetic and potential energy contained in the water discharged from offshore platforms, featuring a pipeline system that includes a main pipeline, an inflow pipe, and a bypass pipeline [1] - The system is designed to efficiently utilize the energy from the height difference between the platform and sea level while avoiding cavitation issues caused by excessive static pressure in the tailpipe, offering a reliable solution for energy recovery and utilization [1] Group 2 - CNOOC Engineering Co., Ltd. was established in 2000 and is located in Tianjin, primarily engaged in civil engineering and construction [2] - The company has a registered capital of 442,135.48 million RMB and has made investments in 7 enterprises, participated in 5,000 bidding projects, and holds 3,210 patent records [2] - Additionally, the company has 26 trademark records and 306 administrative licenses [2]

Market Overview - The oil service engineering sector increased by 1.51% on January 8, with Huibo Energy leading the gains [1] - The Shanghai Composite Index closed at 4082.98, down 0.07%, while the Shenzhen Component Index closed at 13959.48, down 0.51% [1] Stock Performance - Huibo Energy (002554) closed at 3.55, up 9.91% with a trading volume of 656,500 shares and a transaction value of 225 million yuan [1] - Beiken Energy (002828) closed at 11.28, up 3.87% with a trading volume of 263,000 shares and a transaction value of 292 million yuan [1] - Other notable performers include: - CNOOC Engineering (600339) up 1.79% at 3.41 [1] - Zhongman Petroleum (603619) up 1.23% at 23.05 [1] Capital Flow - The oil service engineering sector saw a net inflow of 178 million yuan from institutional investors, while retail investors experienced a net outflow of 84.23 million yuan [2] - The main capital inflow and outflow for key stocks include: - CNOOC Engineering had a net inflow of 81.52 million yuan from institutional investors [3] - Huibo Energy saw a net inflow of 73.71 million yuan from institutional investors [3] - Retail investors showed a net outflow of 71.51 million yuan from CNOOC Engineering [3]

Group 1 - The stock price of CNOOC Engineering increased by 2.14% on January 8, reaching 5.72 CNY per share, with a trading volume of 172 million CNY and a turnover rate of 0.69%, resulting in a total market capitalization of 25.29 billion CNY [1] - Year-to-date, the stock price has risen by 4.19%, with a 3.81% increase over the last five trading days, a 5.54% increase over the last 20 days, and a 5.73% increase over the last 60 days [1] - The company primarily engages in providing design, land manufacturing, offshore installation, commissioning, and maintenance services for the development of marine oil and gas resources, with revenue composition as follows: 75.39% from marine engineering general contracting projects, 16.24% from non-general contracting projects, 7.99% from non-marine projects, and 0.38% from other services [1] Group 2 - As of September 30, the number of shareholders for CNOOC Engineering was 78,900, a decrease of 15.77% from the previous period, while the average circulating shares per person increased by 18.72% to 56,047 shares [2] - For the period from January to September 2025, the company reported operating revenue of 17.66 billion CNY, a year-on-year decrease of 13.54%, and a net profit attributable to shareholders of 1.61 billion CNY, down 8.01% year-on-year [2] - CNOOC Engineering has distributed a total of 7.18 billion CNY in dividends since its A-share listing, with 1.98 billion CNY distributed over the past three years [3]

Core Viewpoint - Oil and gas stocks experienced a short-term surge, with Huibo Pu hitting the daily limit, while companies such as CNOOC Engineering, CNOOC Development, China Oilfield Services, China National Petroleum Engineering, and Baker Hughes also saw significant gains [1] Group 1 - Huibo Pu reached its daily limit, indicating strong investor interest and confidence in the stock [1] - Other companies in the oil and gas sector, including CNOOC Engineering and CNOOC Development, also reported notable increases in their stock prices [1] - The overall trend suggests a positive sentiment in the oil and gas industry, reflecting potential growth opportunities [1]

Market Overview - The oil service engineering sector experienced a decline of 1.9% on January 7, with Renji Co., Ltd. leading the losses [1] - The Shanghai Composite Index closed at 4085.77, up 0.05%, while the Shenzhen Component Index closed at 14030.56, up 0.06% [1] Stock Performance - Key stocks in the oil service engineering sector showed varied performance: - Keli Co., Ltd. (920088) increased by 5.95% to a closing price of 33.28 [1] - Zhun Oil Co., Ltd. (002207) rose by 4.82% to 8.26 [1] - Other notable stocks included: - Bomaike (603727) up 1.45% to 14.73 [1] - Tongyuan Petroleum (300164) up 0.49% to 6.13 [1] - Haike Engineering (600583) down 1.06% to 5.60 [1] - Renji Co., Ltd. (002629) down 5.40% to 6.83 [2] Capital Flow - The oil service engineering sector saw a net outflow of 83.98 million yuan from main funds, while retail investors contributed a net inflow of 48.73 million yuan [2] - The capital flow for key stocks included: - Bomaike (603727) had a main fund net inflow of 19.43 million yuan [3] - Keli Co., Ltd. (920088) saw a net inflow of 15.11 million yuan [3] - Zhun Oil Co., Ltd. (002207) had a net inflow of 304.93 thousand yuan [3] - Haike Engineering (600583) experienced a net outflow of 4.46 million yuan [3]

Group 1 - The first extraordinary general meeting of shareholders for 2026 was held on January 6, 2026, at the company's office in Tianjin Port Free Trade Zone [2] - The meeting was convened by the board of directors, with independent director Mr. Zheng Zhongliang presiding over the meeting [2][3] - The voting method combined on-site and online voting, complying with relevant laws and regulations [2] Group 2 - The only resolution discussed was regarding the extension of financial assistance by a wholly-owned subsidiary, which was approved by a majority of the voting shareholders [4] - The meeting was attended by one of the six current directors, with the chairman and other directors absent due to business reasons [3] - The legal proceedings of the meeting were witnessed by Beijing Zhonglun Law Firm, confirming that all procedures and resolutions were in accordance with legal requirements [5]