The oil and petrochemical sector staged a strong rally against the broader market today (October 26). As of press time, China Oilfield Services Ltd (ASX: 601808) rose more than 5%, while China National Offshore Oil Corporation (ASX: 600938), Shuifa Gas (ASX: 603318), and Offshore Oil Engineering Co Ltd (ASX: 600583) each gained more than 3%. The underlying index of PetroChina ETF Huabao (ASX: 159019), the Guozheng Oil and Gas Index, climbed 1.79% against the market trend. On the news front, international oil prices are swinging at high levels. Some analysts noted that the geopolitical deadlock in the Middle East is unlikely to be resolved in the short term, with the situations involving the US, Iran, and Yemen all carrying significant risk of escalation. The security situation in the Strait of Hormuz has deteriorated, and the probability of a new round of US military strikes against Iran has increased. Meanwhile, the Yemen situation is spiraling upward, with Houthi armed forces continuing to launch attacks on airports and oil facilities inside Saudi Arabia, significantly impacting Saudi Arabia's crude oil exports and refining operations. In summary, geopolitical risks are likely to remain a strong support for international oil prices.
Some institutions also pointed out that against the backdrop of global order restructuring and intensifying geopolitical conflicts, the global energy price center is shifting upward, and China's electricity and natural gas prices are expected to gradually enter a new upward cycle. At the same time, both market risk appetite and domestic risk-free interest rates are declining, and utilities, as important defensive real assets, are expected to attract incremental capital allocation. In the context of geopolitical conflicts, the natural gas price center may exceed market expectations, and domestic upstream gas source assets are expected to benefit.
Shanxi Securities stated that continued attention should be paid to the geopolitical outlook, with the conflict between Yemen's Houthi armed forces and Saudi Arabia escalating. Additionally, the US and Russia have reached a consensus on diesel supply, and the market anticipates the possibility of Russian oil entering the market. The uncertainty surrounding the US-Iran situation remains high, and oil prices are expected to remain in a strong oscillation at the high range of $100-120 per barrel.
To capture the entire oil and gas industry chain in one click and seize the dividends of the energy security era, focus on PetroChina ETF Huabao (ASX: 159019). PetroChina ETF Huabao (ASX: 159019) tracks the Guozheng Oil and Natural Gas Index. Its constituent stock portfolio covers 50 A-share companies across oil and natural gas exploration and development, oil and gas equipment and services, gas transmission and distribution sales, and other oil and natural gas industry-related fields in one click, with the "three barrels of oil" accounting for nearly 40%. Note: As of the end of September 2026, the weights of PetroChina (ASX: 601857), Sinopec (ASX: 600028), and China National Offshore Oil Corporation (ASX: 600938) in the Guozheng Oil and Gas Index were 15.9%, 12.45%, and 13.25%, respectively. Source: Shanghai and Shenzhen Stock Exchanges, etc., as of October 26, 2026. Reminder: Recent market volatility may be significant, and short-term price movements do not predict future performance. Investors must invest rationally based on their own financial conditions and risk tolerance, and pay close attention to position and risk management. Risk disclosure: PetroChina ETF Huabao passively tracks the Guozheng Oil and Natural Gas Index, whose base date is December 31, 2002, and which was published on December 30, 2014. The constituent stock composition of the index is adjusted in due course according to the index compilation rules, and its back-tested historical performance does not predict the future performance of the index. The individual stocks mentioned in this article are only objectively listed as index constituents and do not constitute any individual stock recommendation, nor do they represent the fund manager or the fund's investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for their own independent investment decisions. In addition, any views, analyses, and forecasts in this article do not constitute any form of investment advice to readers, and no responsibility is assumed for any direct or indirect losses caused by the use of the content of this article. Investors should carefully read the fund legal documents such as the Fund Contract, Prospectus, and Fund Product Information Summary to understand the risk-return characteristics of the fund and choose products suitable for their own risk tolerance. Past performance of the fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. According to the fund manager's assessment, the risk level of PetroChina ETF Huabao is R3-medium risk, suitable for balanced (C3) and above investors. The suitability matching opinion should be subject to the sales institution. Sales institutions (including the fund manager's direct sales institution and other sales institutions) conduct risk assessments of the above funds in accordance with relevant laws and regulations, and investors should promptly pay attention to the suitability opinions issued by the fund manager. The suitability opinions of various sales institutions are not necessarily consistent, and the fund product risk level evaluation results issued by fund sales institutions shall not be lower than the risk level evaluation results made by the fund manager. There are differences between the fund's risk-return characteristics in the fund contract and the fund's risk level due to different factors considered. Investors should understand the fund's risk-return situation, carefully select fund products based on their own investment objectives, duration, investment experience, and risk tolerance, and bear the risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not indicate that it makes a substantive judgment or guarantee on the investment value, market prospects, and returns of the funds. Fund investment involves risks.
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