CITIC Securities: Asia's Oil Shortage Gradually Spreading, Oil Prices Continue to Rise

MetaMuskRat · 2026-03-23T05:37:23+00:00

CITIC Securities research report indicates that energy infrastructure has become increasingly important in Middle Eastern geopolitical dynamics. Global oil prices are exhibiting regional differences, with oil shortages in Asia spreading to Europe. In the long run, strategic assets such as oil, gas, and coal outperform financial assets in a stagflation environment, attracting investors' attention to energy companies with strong free cash flow and high dividends.

MetaMuskRat

2026-03-23 05:37:23

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People’s Financial News, March 23 — CITIC Construction Investment Research reports that last week, energy infrastructure became an important variable in Middle Eastern geopolitical developments. Regional differences in global oil prices began to emerge, with spot prices in Dubai and Oman soaring above $150 per barrel, while Brent crude also showed a spread of over $10 per barrel compared to WTI. This indicates that oil shortages in Asia are gradually spreading to Europe. Due to transportation capacity limitations, U.S. crude oil inventories even increased, causing WTI to weaken relatively. From a long-term perspective, Kondratiev winter periods are often accompanied by slowing economic growth and intensified geopolitical struggles. During this phase, oil, gas, and coal, as strategic physical assets that are irreplaceable, not only demonstrate resilience against inflation but also show significant volatility or upward shifts in their price centers under stagflation environments, outperforming typical financial assets. The investment logic for energy companies has shifted toward dividend assets characterized by “free cash flow + high dividends + ongoing buybacks.”

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