U.S. crude oil settlement price breaks through $100, focusing on the low-position opportunity for Huaxia (159731) Petrochemical ETF.

As of 9:45 on March 31, the Huaxia Petrochemical ETF (159731) was down 0.88%, with its holdings seeing more stocks fall than rise. Guangwei Composites, Guangdong Hongda, Rongsheng Petrochemical, Three Trees, and others led the gains.

On March 30, local time, since the United States and Israel launched military actions against Iran, U.S. oil prices closed above the $100-per-barrel mark for the first time during that day’s trading. That day, West Texas Intermediate (WTI) crude oil futures rose by more than 3%, closing at $102.88 per barrel and setting a new high since July 2022. Meanwhile, the international benchmark Brent crude oil was on track to record the largest month-on-month percentage increase in history in March.

CITIC Securities Investment believes that against the backdrop of the Middle East conflict repeatedly disrupting the situation, crude oil supply shocks are bringing new challenges to global energy supply security, and also creating new opportunities for constructing alternative energy in China and globally. It recommends paying attention to companies involved in coal-to-chemicals project construction and refining and chemical engineering.

The Huaxia Petrochemical ETF (159731) and its linked funds (017855/017856) closely track the CSI Petrochemical Industry Index. Judging from the distribution by Shenwan’s first-level industries, the basic chemicals industry accounts for 61.18%, and the petroleum and petrochemical industry accounts for 31.59%. With the reshaping of the supply-and-demand landscape and upgrades in industry attributes, the industry cycle recovery is accelerating.

Economic Information Daily