China Securities Co.,Ltd.: Asia's oil shortage gradually spreading, oil prices continue to rise.

China Securities Co., Ltd. released a research report stating that, from a long-term perspective, periods of economic downturn and intensified geopolitical competition often accompany the bottom of the Kangbo cycle. At this stage, oil, gas, and coal, as irreplaceable strategic physical assets, not only have inflation-resistant qualities but also demonstrate significantly better performance in a stagflation environment compared to general financial assets, showing wide fluctuations or upward movement in the center. The investment logic of energy companies has transformed into dividend assets that possess "free cash flow + high dividends + continuous repurchases." The increased probability of a trough war raises the risk premium of energy assets systemically. From the perspective of national energy security, it is necessary to pay close attention to the energy self-controllable construction being carried out in the Xinjiang region. Crude Oil: Asia's oil shortage gradually spreading, oil prices continue to rise Energy infrastructure has become an important variable in the Middle East geopolitical situation. Iran's attacks on energy facilities of Saudi Arabia, Qatar, and other countries have pushed up oil and gas prices. It is worth noting that regional differences in global oil prices have begun to appear, with spot prices in the Middle East Dubai and Oman soaring to over $150 per barrel, and Brent also pulling more than $10 per barrel higher than WTI, signaling that Asia's oil shortage is gradually spreading to Europe. Due to capacity limitations, the United States has even seen oil accumulation, making WTI relatively weaker. This week, Brent crude spot price is $111.01 per barrel, a month-on-month increase of +13.73%; WTI crude spot price is $96.08 per barrel, a month-on-month increase of +4.46%. Xinjiang Coal Chemical Industry: Energy security + cost advantage, Xinjiang coal chemical industry is expected to usher in a golden age From the perspective of national strategy, Xinjiang has benefited from two major transformations: from coastal economy to the Belt and Road Initiative, Xinjiang has transformed from a rear area to a forefront gateway, holding a geographical advantage. Energy security and dual-carbon environmental protection are tilting to the left, with the return of the coal chemical industry king, Xinjiang relying on resource advantages to become the focus of energy security. From Xinjiang's own perspective, development to promote stability is the main theme in Xinjiang. Throughout history, Xinjiang has adjusted the balance between development and stability, and currently is in an important strategic period of high-quality development. The development of the coal chemical industry in Xinjiang is similar to the shale gas in the United States, requiring long-term investment in underlying technology and infrastructure by the country to ultimately overcome external energy dependence. Natural Gas: Iran's attack will destroy 17% of Qatar's LNG production capacity, with a recovery period lasting up to five years The CEO and Minister of Energy Affairs of Qatar Energy Company told Reuters on Thursday that in this unprecedented attack, two out of fourteen liquefied natural gas (LNG) plants in Qatar and one out of its two natural gas-to-liquids facilities were damaged. He stated in an interview that this repair will impact the annual production of 12.8 million tons of LNG over a period of three to five years. It will have to declare force majeure on long-term LNG supply contracts to Italy, Belgium, South Korea, and China.