Today (July 13th), the oil and petrochemicals sector showed strength against the broader market trend.
The Huabao Oil ETF (159019), which provides one-click exposure to the entire oil and gas industry chain, opened with gains exceeding 3% before experiencing some volatility and pulling back. As of this report, it is up 0.83%.
Among its component stocks, shares in sectors like natural gas and petroleum product sales led the gains. As of this report, 天壕能源 (Tianhao Energy) is up over 10%, 水发燃气 (Shuifa Gas) and 九丰能源 (Jiufeng Energy) have hit their daily limit-up, while 深圳燃气 (Shenzhen Gas), 新奥股份 (ENN Ecological Holdings), 陕天然气 (Shaanxi Natural Gas), and others are also trading higher.
The catalyst for the move appears to be a sudden escalation in Middle Eastern tensions. Iran announced the closure of the Strait of Hormuz, the world's most critical energy shipping lane. The U.S. military subsequently announced strikes against Iran, with Iran retaliating against U.S. targets in multiple Middle Eastern countries. This is likely influencing the sharp rise in international oil prices.
Analysts at Everbright Securities note that this latest U.S.-Iran conflict stems from fundamental disagreements over control of passage through the Strait of Hormuz. While technical negotiations based on previous memorandums of understanding are ongoing, the crude oil market remains concerned about the prospects for peace. It is anticipated that negotiations between the U.S. and Iran on issues like passage rights will be difficult to conclude in the short term, and military clashes and partial blockades of the strait during this period will amplify oil price volatility risks.
Looking ahead, CITIC Securities suggests that during previous closures of the strait, some oil wells were forced to shut down, and prolonged shutdowns could lead to permanent loss of some production capacity. In the long term, against a backdrop of low capital expenditure, the number of U.S. drilled but uncompleted wells (DUCs) and new drilling rigs continues to hit new lows. This implies that the high level of U.S. crude oil production may be unsustainable. Future surplus supply and pricing power are expected to shift to the Middle East. However, the probability of conflict during the trough of the economic long wave is increasing, and real-world contradictions are becoming more pronounced, systematically elevating the risk premium for energy assets.
For investors seeking one-click exposure to the entire oil and gas industry chain and aiming to capture the opportunities of the energy security era, the Huabao Oil ETF (159019) warrants attention. The ETF tracks the SZSE Oil & Gas Index, and its portfolio of component stocks provides coverage across 50 A-shares related to the petroleum and natural gas industry, including exploration and development, equipment and services, and gas transmission and sales. The "Big Three" Chinese oil majors account for nearly 40% of the index.
Note: Please refer to the fund's legal documents for details on fees.
Source: Shanghai and Shenzhen Stock Exchanges, etc., data as of July 13, 2026. Reminder: Recent market volatility may be significant. Short-term price movements do not indicate future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying high attention to position sizing and risk management.
Risk Disclosure: The Huabao Oil ETF passively tracks the SZSE Oil & Gas Index. The base date for this index is December 31, 2002, and it was launched on December 30, 2014. The composition of the index's constituent stocks is adjusted according to its compilation rules. The index's back-tested historical performance does not predict its future performance. Individual stocks mentioned in this article are listed solely for the purpose of objectively illustrating the index's composition and are not individual stock recommendations, nor do they represent the investment direction of the fund manager or the fund. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions they make. Furthermore, any views, analyses, or predictions in this article do not constitute investment advice of any form to the reader, and no responsibility is accepted for any direct or indirect losses arising from the use of this content. Investors should carefully read the Fund Contract, Prospectus, Key Facts Statement, and other fund legal documents to understand the fund's risk-return characteristics and choose products that match their own risk tolerance. A fund's past performance does not predict its future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. According to the fund manager's assessment, the risk rating of the Huabao Oil ETF is R3 (Medium Risk), suitable for Balanced (C3) and above investors. Suitability matching opinions should be based on the sales institution. Sales institutions (including the fund manager's direct sales channels and other sales institutions) conduct risk assessments of the above-mentioned funds according to relevant laws and regulations. Investors should pay timely attention to the suitability opinions issued by the fund manager. Suitability opinions from various sales institutions may not necessarily be consistent, and the fund product risk rating results issued by fund sales institutions shall not be lower than the risk rating results determined by the fund manager. There may be differences between the fund's risk-return characteristics as described in the fund contract and its risk rating due to different considerations. Investors should understand the risk-return profile of the fund and choose fund products prudently based on their own investment objectives, time horizon, investment experience, and risk tolerance, bearing the risks themselves. The China Securities Regulatory Commission's registration of the above-mentioned funds does not indicate its substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Fund investment involves risks.
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