Lates News

CITIC Securities report believes that crude oil is the most directly affected commodity by the situation in the Middle East. From a supply perspective, once the tension in the Middle East directly affects the oil-producing countries, oil supply often decreases significantly or can only recover after the conflict intensity decreases or the war completely subsides. From a price perspective, the upward trend in oil prices due to tension often occurs in the early stages of a conflict, with subsequent oil price trends still determined by supply and demand fundamentals. In the long term, as the share of oil supply from the Middle East decreases and oil reserves and emergency mechanisms in consuming countries improve, the impact of tension in the Middle East on global oil prices is gradually weakening at the margin.