Geopolitical tensions push up international oil prices; multiple beneficiary sectors in A-shares show strong performance since March

People’s Financial News, March 21 — Under the influence of tense geopolitical tensions, international crude oil prices have been strong since March. Brent crude futures once approached $120 per barrel and are currently around $105 per barrel. Driven by the sharp rise in oil prices, several benefiting sectors have performed strongly. Since March, the coal sector has increased by over 6%, the coal chemical sector by over 22%, and the oil exploration sector by nearly 15%. Industry insiders say that the ongoing escalation of conflicts in the Middle East and the disruption of shipping through the Strait of Hormuz have caused international oil prices to soar recently, and short-term oil prices may continue to rise. Industries benefiting from rising oil prices can generally be divided into four categories: sectors directly benefiting from oil price increases, sectors benefiting from substitution effects, sectors with strong pricing power, and sectors with inflation-hedging properties. (China Securities Journal)