Huatai Securities: The uncertainty of geopolitics combined with the future potential reserve supplement may maintain the mid-term oil price at a high level.

Huatai Securities research report stated that considering the blockage of the Strait of Hormuz and limited alternative routes, combined with the potential for several months of recovery period for oil fields in the Middle East following production stoppages, and the possibility of a global round of strategic reserves for crude oil, refined oil, and other petrochemical products after the strait reopens, it is expected that the mid-term oil price center will remain at a high level, with the average Brent price forecast for 2026 remaining at $90 per barrel. In terms of recommended targets, Huatai Securities believes that leading energy companies with the ability to increase production and reduce costs, as well as incremental natural gas business, may help ensure China's independent and controllable oil and gas resources. The resilience of China's petrochemical industry chain is relatively strong, with short-term supply disruptions lessening impact compared to overseas companies. Following expectations of supply chain stability, global restocking may boost continued recovery in the refining and chemical industries, recommending leading companies with complete industrial chains.