According to the Guotai Junan Research Report, upstream profits have continued to grow as oil and gas storage increases production. Since 2024, geopolitical conflicts have supported high oil price fluctuations. Oil and gas production in the upstream sector of three barrels of oil continued to grow in the first three quarters of 2023, and profits continued to grow year on year. CNOOC and CNPC continue to maintain their strategic goals of increasing storage and production and stabilizing oil and gas growth. The oil service industry maintained a year-on-year recovery pace, and mainstream companies achieved year-on-year growth on both the revenue side and profit side in the first three quarters. Midstream and downstream chemicals are still at their bottom, so keep an eye on the pace of recovery. Affected by the increase in the penetration rate of new energy sources and the peak of refined oil products, etc., the cracking price difference of refined oil products is under pressure, and chemicals are still in the final stages. With the promotion of various stimulus policies, chemicals were determined as a recovery direction for the post-cycle economic sector. Demand is expected to recover as downstream demand picks up and the 2025 new construction season approaches.

According to the Guotai Junan Research Report, upstream profits have continued to grow as oil and gas storage increases production. Since 2024, geopolitical conflicts have supported high oil price fluctuations. Oil and gas production in the upstream sector of three barrels of oil continued to grow in the first three quarters of 2023, and profits continued to grow year on year. CNOOC and CNPC continue to maintain their strategic goals of increasing storage and production and stabilizing oil and gas growth. The oil service industry maintained a year-on-year recovery pace, and mainstream companies achieved year-on-year growth on both the revenue side and profit side in the first three quarters. Midstream and downstream chemicals are still at their bottom, so keep an eye on the pace of recovery. Affected by the increase in the penetration rate of new energy sources and the peak of refined oil products, etc., the cracking price difference of refined oil products is under pressure, and chemicals are still in the final stages. With the promotion of various stimulus policies, chemicals were determined as a recovery direction for the post-cycle economic sector. Demand is expected to recover as downstream demand picks up and the 2025 new construction season approaches.