Huatai Securities: Energy oligarch enterprises with the ability to increase production and reduce costs, as well as incremental natural gas business, may present allocation opportunities.

Huatai Securities pointed out that in August, OPEC+ continued to significantly increase its September production target and also gave the United Arab Emirates additional quota. Combined with the fading concerns over supply caused by sanctions on Russia by the United States and Europe, oil prices gradually fell. Huatai Securities believes that the actual increase in production progress of OPEC+ and changes in crude oil exports, as well as changes in oil demand with the end of the peak season in the northern hemisphere, are important marginal factors in the short term. In the long term, the bottom support of oil prices remains stable, and energy oligopolies with the ability to increase production and reduce costs, as well as high dividend potential in the natural gas sector, may present investment opportunities.