Report Overview - Report Title: Crude Oil Weekly Report: International Oil Prices Fluctuated and Rose Supported by Concerns over Iranian Supply - Report Date: January 18, 2026 - Chief Analyst: Chen Shuxian, CFA - Analyst: Zhou Shaowen 1. Report Industry Investment Rating No industry investment rating information is provided in the report. 2. Report Core View The report mainly presents the weekly data of crude oil and refined oil in the United States, including prices, inventories, production, demand, and import and export volumes. It also provides the performance and valuation of related listed companies, and recommends a number of oil - related companies [2][3]. 3. Summary by Directory 3.1 Crude Oil Weekly Data Briefing - **Upstream Key Company Performance**: The report shows the recent performance of upstream key companies such as CNOOC, PetroChina, and Sinopec, including stock price changes in the past week, month, quarter, year, and year - to - date. It also provides the valuation of these companies, including total market value, net profit attributable to the parent company, P/E ratio, and P/B ratio [8]. - **Crude Oil Market**: Brent and WTI crude oil futures had average weekly prices of $64.8 and $60.3 per barrel respectively, up $3.2 and $2.6 from the previous week. The total US crude oil inventory, commercial crude oil inventory, strategic crude oil inventory, and Cushing crude oil inventory were 8.4 billion, 4.2 billion, 4.1 billion, and 0.2 billion barrels respectively, with a week - on - week increase of 361, 339, 21, and 75 barrels. US crude oil production was 13.75 million barrels per day, down 60,000 barrels per day week - on - week. The number of active US crude oil rigs was 410, up 1 week - on - week, and the number of active fracturing fleets was 156, up 4 week - on - week. US refinery crude oil processing volume was 16.96 million barrels per day, up 50,000 barrels per day week - on - week, and the refinery operating rate was 95.3%, up 0.6 percentage points week - on - week. US crude oil imports, exports, and net imports were 7.09 million, 4.31 million, and 2.79 million barrels per day respectively, up 750,000, 40,000, and 710,000 barrels per day week - on - week [2][8]. - **Refined Oil Market**: The average weekly prices of US gasoline, diesel, and jet fuel were $76, $92, and $89 per barrel respectively, with a week - on - week change of +$3.0, +$3.5, and -$5.1. The inventory of US gasoline, diesel, and jet fuel was 250 million, 130 million, and 40 million barrels respectively, with a week - on - week change of +8.98 million, -30,000, and -890,000 barrels. The production of US gasoline, diesel, and jet fuel was 9.03 million, 5.3 million, and 1.85 million barrels per day respectively, with a week - on - week change of +30,000, -20,000, and -20,000 barrels. The consumption of US gasoline, diesel, and jet fuel was 8.3 million, 4.1 million, and 1.88 million barrels per day respectively, with a week - on - week change of +130,000, +900,000, and +180,000 barrels. The import, export, and net export of US gasoline were 130,000, 860,000, and 730,000 barrels per day respectively, with a week - on - week change of +30,000, -110,000, and -130,000 barrels. Similar data is also provided for diesel and jet fuel [2][9]. - **Oil Service Market**: The average weekly daily rates of self - elevating offshore drilling platforms and semi - submersible offshore drilling platforms remained unchanged week - on - week, month - on - month, and quarter - on - quarter [9]. 3.2 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, including the sector's overall performance and the performance of its sub - industries. However, specific numerical data is not fully presented in the provided text [11]. - **Listed Company Performance in the Sector**: The report shows the stock price changes of upstream companies in the sector, including CNOOC, PetroChina, Sinopec, and other companies, in the past week, month, quarter, year, and year - to - date. It also provides the valuation of these companies, including total market value, net profit attributable to the parent company, P/E ratio, and P/B ratio [22][23]. 3.3 Crude Oil Sector Data Tracking - **Crude Oil Price**: The report shows the prices of various crude oils such as Brent, WTI, Russian Urals, and Russian ESPO, as well as their price differences. It also analyzes the relationship between the US dollar index, LME copper price, and WTI crude oil price [8][9]. - **Crude Oil Inventory**: It presents the inventory data of US crude oil, including total inventory, commercial inventory, strategic inventory, and Cushing inventory, and analyzes the relationship between US commercial crude oil inventory and oil prices [8][41]. - **Crude Oil Supply**: It shows the production data of US crude oil, including production volume, the number of drilling rigs, and the number of fracturing fleets, and analyzes the relationship between the number of drilling rigs, fracturing fleets, and oil prices [8][60]. - **Crude Oil Demand**: It presents the crude oil processing volume and operating rate of US refineries, as well as the operating rates of Chinese local and major refineries [8]. - **Crude Oil Import and Export**: It shows the import, export, and net import data of US crude oil and petroleum products [8]. 3.4 Refined Oil Sector Data Tracking - **Refined Oil Price**: It analyzes the relationship between international oil prices and domestic gasoline, diesel, and jet fuel prices, and presents the prices and price differences of refined oils in different regions such as the US, Europe, and Singapore [9][91]. - **Refined Oil Inventory**: It shows the inventory data of US and Singapore gasoline, diesel, and jet fuel [9]. - **Refined Oil Supply**: It presents the production data of US gasoline, diesel, and jet fuel [9]. - **Refined Oil Demand**: It shows the consumption data of US gasoline, diesel, and jet fuel, as well as the number of airport security checks of US passengers [9][150]. - **Refined Oil Import and Export**: It shows the import, export, and net export data of US gasoline, diesel, and jet fuel [9]. 3.5 Oil Service Sector Data Tracking The report presents the average daily rates of self - elevating and semi - submersible offshore drilling platforms [9]. 3.6 Related Listed Companies - **Recommended Companies**: CNOOC/China National Offshore Oil Corporation (600938.SH/0883.HK), PetroChina/PetroChina Company Limited (601857.SH/0857.HK), Sinopec/China Petroleum & Chemical Corporation (600028.SH/0386.HK), CNOOC Energy Technology & Services Limited (601808.SH), Offshore Oil Engineering Co., Ltd. (600583.SH), CNOOC Development Co., Ltd. (600968.SH) [3]. - **Companies to Watch**: Sinopec Oilfield Service Corporation (600871.SH/1033.HK), China Petroleum Engineering & Construction Corporation (600339.SH), Sinopec Machinery Co., Ltd. (000852.SZ) [3].

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].

Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - International oil prices increased due to geopolitical tensions, including Ukraine's attacks on Russian oil facilities and potential restrictions on fuel exports from Russia, alongside a decrease in US crude oil inventories [2][9] - As of September 26, 2025, Brent and WTI crude oil prices were $69.22 and $65.72 per barrel, respectively, reflecting increases of 4.82% and 5.32% from the previous week [2][27] - The report highlights the performance of the oil and petrochemical sector, noting a slight decline of 0.12% in the sector compared to a 1.07% increase in the broader market [10][13] Summary by Sections Oil Price Review - Brent crude futures settled at $69.22 per barrel, up $3.18 (+4.82%) from the previous week, while WTI crude futures rose to $65.72 per barrel, an increase of $3.32 (+5.32%) [2][27] - Russian Urals crude price remained stable at $65.49 per barrel, while Russian ESPO crude increased by $1.67 (+2.65%) to $64.63 per barrel [2][27] Offshore Drilling Services - As of September 22, 2025, the number of global offshore self-elevating drilling platforms was 371, an increase of 1 from the previous week, while floating drilling platforms decreased to 130 [31] US Crude Oil Supply - US crude oil production reached 13.501 million barrels per day, an increase of 19,000 barrels from the previous week [52] - The number of active drilling rigs in the US rose to 424, with an increase of 6 rigs [52] US Crude Oil Demand - US refinery crude processing averaged 16.476 million barrels per day, up by 52,000 barrels from the previous week, with a refinery utilization rate of 93.00%, down 0.3 percentage points [63] US Crude Oil Inventory - Total US crude oil inventory was 821 million barrels, a decrease of 377,000 barrels (-0.05%) from the previous week [72] - Strategic crude oil inventory increased by 230,000 barrels (+0.06%) to 406 million barrels, while commercial crude oil inventory decreased by 607,000 barrels (-0.15%) to 415 million barrels [72] Finished Oil Products - In North America, the average prices for diesel, gasoline, and jet fuel were $98.74 (+0.47), $83.94 (-0.58), and $85.97 (-1.87) per barrel, respectively [91]

Investment Rating - The report maintains a "Positive" investment rating for the oil processing industry [1] Core Insights - International oil prices have risen due to geopolitical tensions, including OPEC+ production adjustments and potential U.S. sanctions on Russia [2][8] - As of September 12, 2025, Brent and WTI oil prices were $66.99 and $62.69 per barrel, respectively, reflecting increases of 2.27% and 1.33% from the previous week [2][29] - The oil and petrochemical sector showed a mixed performance, with the sector down 0.41% while the broader market (CSI 300) rose by 1.38% [9][12] Summary by Sections Oil Price Review - Brent crude futures settled at $66.99 per barrel, up $1.49 (+2.27%) from the previous week, while WTI crude futures rose to $62.69 per barrel, up $0.82 (+1.33%) [2][29] Offshore Drilling Services - As of September 1, 2025, the number of global offshore self-elevating drilling platforms was 372, a decrease of 1 from the previous week [38] U.S. Oil Supply - U.S. crude oil production reached 13.495 million barrels per day, an increase of 72,000 barrels per day from the previous week [57] - The number of active drilling rigs in the U.S. was 416, up by 2 rigs from the previous week [57] U.S. Oil Demand - U.S. refinery crude oil processing averaged 16.818 million barrels per day, down by 51,000 barrels per day from the previous week, with a refinery utilization rate of 94.90%, up 0.6 percentage points [69] U.S. Oil Inventory - Total U.S. crude oil inventories stood at 830 million barrels, an increase of 4.453 million barrels (+0.54%) from the previous week [78] Related Companies - Key companies in the sector include China National Offshore Oil Corporation (CNOOC), China Petroleum & Chemical Corporation (Sinopec), and China National Petroleum Corporation (PetroChina) [2]

Core Viewpoint - The recent escalation of geopolitical tensions in the Middle East has led to a significant increase in international oil prices, reaching their highest levels of the year, driven by concerns over potential disruptions in oil supply and transportation through the Strait of Hormuz [1][3]. Oil Price Movements - As of June 19, Brent crude oil futures rose by 1% to $77.492 per barrel, marking a 20% increase from the year's low [1]. - Domestic crude oil futures in China hit a nearly four-month high, with the main contract closing at 570.9 yuan per barrel, a daily increase of 4.73% and a 28.38% rise for June [1]. Geopolitical Impact - Analysts suggest that the ongoing conflict may lead to a short-term decline in Iranian oil supply and potential disruptions in the Strait of Hormuz, coinciding with the upcoming peak oil consumption season in the Northern Hemisphere [3]. - Concerns over the safety of oil transportation have intensified, with fears that further escalation could impact oil and gas infrastructure in Iran [4][5]. Market Volatility - The Chicago Board Options Exchange (CBOE) Oil ETF Volatility Index (OVX) surged by 26% to 71.56, the highest level in nearly three years, indicating heightened market expectations for oil price volatility [4]. - The shipping costs for supertankers have dramatically increased, with daily rental rates for Very Large Crude Carriers (VLCCs) rising from $19,998 to $47,609, a 138% increase within a week [6]. Supply Tightening - The risk of oil supply disruptions is expected to increase, with the potential for accelerated inventory depletion and higher oil prices if the situation escalates [7]. - Recent data from the U.S. Energy Information Administration (EIA) indicated a significant drop in U.S. crude oil inventories, decreasing by 11.473 million barrels to 421 million barrels, the largest decline in a year [7]. Future Outlook - Short-term oil price movements may continue to rise due to lower-than-expected actual production increases from OPEC+ and the onset of the travel season in Europe and the U.S., compounded by escalating geopolitical tensions [8]. - Historical trends suggest that geopolitical factors may have a transient impact on oil prices, with long-term price movements being more influenced by economic outlook and supply-demand dynamics [8].