A-share oil and gas sector triggers a wave of limit-up trading, institutions predict short-term fluctuations in oil prices may increase

On February 24th, the three major A-share indexes collectively closed higher, ushering in a strong start to the Year of the Horse. Looking at the performance of industry sectors, the increasing uncertainty in geopolitical situations has driven international oil prices up, leading to a surge in the A-share oil and gas sector. Some targets have also seen an increase in margin trading by investors this year, indicating that leveraged funds recognize the investment value of these related targets. As for the future trend of international oil prices, industry institutions predict that they will not rise unilaterally, but will fluctuate more due to geopolitical influences. For investors, if short-term oil prices continue to rise due to geopolitical issues, it is recommended to focus on upstream enterprises with oil and gas resources and the offshore oil and gas service engineering sector, which will benefit from the industry's high prosperity in the long run. If geopolitical risk premiums fall, the long-term allocation value of midstream and downstream chemical industry leaders is worth paying attention to.