Inventory Decline Combined With Geopolitical Struggles Causes International Oil Prices to Rise Volatile

An investor asked on the investor interaction platform: Which segment does your company's lithium battery business belong to? Shuangxin Environmental (001369.SZ) stated on the investor interaction platform on January 9 that the company's products DMC, DEC, EMC are important raw materials for lithium battery electrolytes.

On January 9th, Wanhua Chemical Group Co., Ltd. announced the technical renovation and resumption of production at the Ethylene Phase I unit in the Yantai Industrial Park. According to the company's "Announcement on the Suspension and Technical Renovation of the Ethylene Phase I Unit in the Yantai Industrial Park" (Temporary 2025-31), released on May 23, 2025, the 1 million tons/year Ethylene Phase I unit in the Yantai Industrial Park was shut down on June 3, 2025, for feedstock diversification renovation. As of now, the feedstock modification for the Ethylene Phase I unit has been completed, producing ethylene through ethane cracking, and qualified products have been produced.

Recently, Hengli Petrochemical Co., Ltd. (hereinafter referred to as "Hengli Petrochemical") announced that its wholly-owned subsidiary, Hengli Petrochemical (Dalian) Refining Co., Ltd. (hereinafter referred to as "Hengli Refining"), has completed all relevant procedures for the absorption and merger of another wholly-owned subsidiary, Hengli Petrochemical (Dalian) Chemical Co., Ltd. (hereinafter referred to as "Hengli Chemical"). After the merger is completed, Hengli Refining will continue to operate, and Hengli Chemical will be legally dissolved. All its assets, claims, debts, and other rights and obligations will be assumed by Hengli Refining.

Recently, Ningxia Sainuo Chemical Co., Ltd. was established with a registered capital of 1 billion yuan. Its business scope includes the manufacture of specialized chemical products (excluding hazardous chemicals); sales of specialized chemical products (excluding hazardous chemicals); and the manufacture of daily chemical products. According to Qichacha's equity penetration, the company is wholly owned by Baofeng Energy. Ningxia Baofeng Energy is a high-end coal-based new material full industrial chain enterprise, with a production capacity including an annual output of 9.1 million tons of coal, 7 million tons of coke, 14.6 million tons of washed coal, 20 million tons of methanol, 8.46 million tons of olefins, 4.23 million tons of polypropylene, 4.23 million tons of polyethylene, 1.35 million tons of fine chemicals, 250,000 tons of EVA, 100,000 tons of vinyl acetate, 200,000 tons of styrene, 100,000 tons of needle coke, among others. The upstream and downstream of the industrial chain are closely connected and interact with each other, allowing the production of more than 100 types of chemical products.

  On January 8, oil prices rose in early trading as U.S. crude oil inventories fell more than expected and traders closely monitored developments in Venezuela. According to the latest report from the U.S. Energy Information Administration, crude oil inventories decreased by 3.8 million barrels last week, far exceeding the expected drop of 900,000 barrels, marking the largest decline since late October. Meanwhile, traders are digesting the latest U.S. actions regarding Venezuela, including plans to control the Venezuelan oil industry and the seizure of two oil tankers. Analysts at Saxo Bank stated, “While geopolitical risks have temporarily prevented further declines in oil prices, the prospect of increased exports from Venezuela has already put pressure on Canadian crude prices and may add to the supply in a market that is already facing ample supply pressures.”