Middle Eastern geopolitical risks intensify, causing oil prices to surge; the oil sector welcomes a strategic opportunity

The geopolitical situation in the Middle East flares up again, and clear differences emerge in statements from all sides. Risk-aversion sentiment quickly intensifies, driving crude oil prices to surge significantly. On April 2, Brent crude oil once broke above $107 per barrel, with an intraday gain of more than 6%. Fueled by the price increase, A-share oil and gas sector stocks also moved up in sync. By 13:25, Oil ETF E Fund (159181) rose 3.03%. CNOOC Engineering (600339.SH), Heshun Petroleum (603353.SH), Jereh Group (002353.SZ), and Blue Flame Holdings (000968.SZ) hit the daily limit. China Merchants Shipbuilding (601872.SH) and China Merchants Nanhai (601975.SH) rose by more than 7%. Zhongman Petroleum (603619.SH) and Intercontinental Oil & Gas (600759.SH) rose by more than 4%, highlighting the industry’s strong “money-making” effect.

At present, geopolitical conflicts are reshaping the supply-and-demand landscape, and the oil-price benchmark is expected to continue trending higher. The escalation of this round of developments further highlights crude oil’s strategic security attribute, far beyond the value of ordinary commodities. Many countries around the world have already released oil reserves to stabilize the market. Going forward, replenishment demand will be concentrated and released, providing strong support for the demand side.

It is reported that economic entities such as Japan, South Korea, Germany, and others have begun releasing oil reserves on a large scale. In the future, this will correspondingly generate demand for replenishing strategic stockpiles on an even larger scale. Meanwhile, major oil-producing countries such as those in the Middle East and Russia, based on their own fiscal considerations and strategic security needs, have a strong willingness to keep oil prices high. With supply and demand resonating on both ends, the crude oil price pattern at high levels over the medium to long term is set to remain stable.

To capture the oil and gas price-increase opportunity, you can consider the low-fee tool Oil ETF E Fund (159181). The product closely tracks the China Securities Oil and Natural Gas Index: the holdings emphasize the upstream to midstream of the industry chain, with a pure resource attribute. Its long-term performance has been outstanding. As of March 31, 2026, its annualized return over the past five years reaches 15.9%, with a significant outperformance advantage versus comparable indices. In addition, with management and custody fees totaling only 15+5 bps per year, the low-cost advantage is prominent—making it easier and more worry-free to deploy core oil and gas assets in one click.