The Latest Domestic and International News: Oil Price Fluctuations and Their Significant Impacts on Various Industries I. International News 1. The US and Iraq Discuss the Resumption of Exports via a Key Oil Pipeline: On February 25th, local time, US Secretary of State Rubio had a telephone conversation with Iraqi Prime Minister Mohammed Shia al-Sudani. Both sides unanimously agreed that Iraq needs to achieve energy independence and promptly reopen the oil pipeline between Iraq and Turkey. This pipeline connects Iraq with the Turkish Mediterranean port of Ceyhan and is an important channel for Iraqi oil exports. Since its closure in March 2023, its fate has been under constant attention. If it is restarted, it is expected to transport approximately 185,000 barrels of crude oil per day in the initial stage, which may exacerbate market concerns about oversupply and exert downward pressure on oil prices. 2. International Oil Prices Drop: As of 0:00 on February 26th, the WTI price of US light crude oil was $70.62 per barrel, a decrease of 0.11%; the price of Brent crude oil was $74.61 per barrel, a decrease of 0.32%. 3. The Oil and Gas Sector in the Indian Stock Market Declines: According to the news from National Business Daily on February 24th, the oil and gas sector in the Indian stock market declined. OIL INDIA fell by more than 3%, Oil and Natural Gas Corporation of India fell by more than 2%, and Hindustan Petroleum and Reliance Industries fell by more than 1%. 4. OPEC+ Delays the Expectation of Production Increase: OPEC+ is considering postponing the production increase initiative originally scheduled to start in April and extending the existing production reduction agreement to balance the market. However, there are differences within the organization regarding this issue. II. Domestic News 1. Dynamics of Domestic Oil Price Adjustments: Starting from 24:00 on February 19th, 2025, the prices of gasoline and diesel in China were reduced by 170 yuan and 160 yuan per ton respectively. The time for the new round of oil price adjustment is 24:00 on March 5th. As of February 26th, this round of oil price adjustment has been in progress for 5 working days, with a crude oil change rate of -0.51%. It is expected that the oil price will be reduced by 15 yuan per ton, and it still remains within the range of a standstill adjustment. 2. The First Petroleum Engineering Pilot Platform Company of Sinopec is Registered and Established: According to the news from the Oriental Oil and Gas Network, the first petroleum engineering pilot platform company of Sinopec has been registered and established. This will have a positive impact on the research, development, and application of China's petroleum engineering technology and other aspects. III. Energy Industry 1. Oil Exploration and Production: When oil prices rise, companies' profits increase, and they have more funds available for oil field exploration, development of new oil fields, and the improvement of production technologies. When oil prices fall, companies' revenues decrease, and they may cut expenses or even suspend some high-cost projects. 2. Oil Refining: A decrease in crude oil prices means a reduction in costs, which can expand profit margins and enable companies to sell refined oil products at more competitive prices. An increase in crude oil prices, on the other hand, will squeeze profit margins. 3. New Energy: High oil prices will stimulate research and investment in new energy sources, promoting the development of the new energy industry. When oil prices fall, it may, to some extent, weaken the driving force for the development of new energy and slow down its development speed. IV. Transportation Industry 1. Aviation: The aviation industry is highly sensitive to fuel prices. When oil prices rise, the operating costs of airlines will increase significantly, and they may adjust flight routes, raise ticket prices, or reduce the frequency of flights. When oil prices fall, operating costs decrease, and the operating pressure is relieved. 2. Road Transportation: The fuel costs of transportation vehicles such as trucks are directly related to oil prices. When oil prices rise, the costs of logistics companies increase, which may lead to an increase in freight rates, thus triggering a chain reaction throughout the entire supply chain. When oil prices fall, transportation costs decrease, and the profit margins of logistics companies may expand. 3. Maritime Transportation: High oil prices will compress the profit margins of shipping companies, increase transportation costs, and may lead to an increase in freight rates. When oil prices fall, the costs of shipping companies decrease, and their profitability may increase. V. Chemical Industry Many chemical products such as plastics, rubbers, and chemical fibers use crude oil as their raw materials. When oil prices rise, the costs of chemical enterprises increase, and the prices of their products may rise accordingly, which may affect the companies' profits. When oil prices fall, costs decrease, the prices of products may drop, the competitiveness of enterprises is enhanced, and profit margins may expand. VI. Manufacturing Industry 1. Automobile Manufacturing: The costs of plastic and rubber components in automobiles will change with fluctuations in oil prices, which in turn affects the production costs and selling prices of the entire vehicle. When oil prices are high, consumers tend to purchase energy-efficient vehicles or electric vehicles, and the sales of traditional fuel-powered vehicles may be suppressed. When oil prices are low, the sales of traditional fuel-powered vehicles are relatively better. 2. Other Manufacturing Industries: The production of many manufacturing products relies on oil-related raw materials or requires oil energy to drive production equipment. Oil price fluctuations will affect the procurement costs of raw materials and transportation costs, thereby influencing the production costs and product pricing of enterprises. VII. Agriculture Fluctuations in oil prices will indirectly affect the prices of agricultural inputs such as fertilizers and pesticides, as the production and transportation of these products are closely related to oil. When oil prices rise, the usage costs of agricultural machinery increase, and the transportation costs of agricultural inputs such as fertilizers rise, which may push up the prices of agricultural products and affect the production costs of agriculture and the market prices of agricultural products. When oil prices fall, there will be room for a reduction in agricultural production input costs. VIII. Financial Industry 1. Stock Market: When oil prices fall, the stock prices of oil companies often decline because their profitability is affected. For industries such as aviation and chemicals that are significantly influenced by oil prices, oil price fluctuations will also affect the market's profit expectations for enterprises in these industries, which will be reflected in their stock prices. 2. Bond Market: Oil price fluctuations will change the credit risks of bonds related to oil. When oil prices fall, the credit risks of related bonds may increase.