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Leading Chinese oil, gas, and shipping companies provided updates on how the ongoing conflict in the Middle East might influence their operations, as market expectations for the supply of oil, natural gas, coal, chemicals, and shipping rates have shifted significantly.
The global crude oil market has experienced volatility driven by various factors, including geopolitical tensions and supply-demand dynamics. Prices have fluctuated extensively in recent days, with major industry players—such as Sinopec, China National Petroleum Corporation, and China National Offshore Oil Corporation—highlighting the recent surge in oil and gas indices. They noted that short-term volatility in oil prices introduces considerable uncertainty, and investors should remain cautious regarding potential risks.
Yesterday, the oil and gas index gained nearly 10%, the gas index increased by over 9%, the shipping index rose approximately 9%, and the energy equipment sector saw a nearly 6% jump.
The Strait of Hormuz is a critical factor in assessing how the Middle East conflict could influence oil prices. In 2024, roughly 20 million barrels of oil were traded daily through the strait, which accounts for over 25% of global seaborne oil trade, according to U.S. energy data. About 84% of the crude oil and condensate passing through the Strait was destined for Asia, which includes countries like China, India, Japan, and South Korea, receiving approximately 69% of these exports. Similarly, 83% of liquefied natural gas traveling through the strait was headed in the same direction.
In 2024, China imported an average of 11 million barrels of crude oil daily, with nearly half of that—about 44%—coming through the Strait of Hormuz.
Haimo Technologies Group, a prominent manufacturer of oilfield equipment, warned that if regional tensions persist or escalate to other major oil and gas countries in the region, their sales and service operations related to oil and gas equipment in the Middle East could face adverse effects.
Additionally, several publicly traded companies have reported on the financial impacts stemming from increased international oil prices caused by regional tensions, as well as the rising transportation costs and cycle delays in certain areas—information shared through investor platforms over the past few days.
Hainan Strait Shipping noted that fuel costs constitute less than 20% of their operating expenses, making oil price fluctuations manageable within their overall cost structure. The company is mitigating rising fuel costs by optimizing shipping speeds and routes, as well as purchasing fuel in bulk at strategic times.
Shenghang Shipping, which primarily handles hazardous chemicals transportation across Northeast Asia, Southeast Asia, and India, indicated that their routes do not include Middle Eastern waters, so the conflict currently has no direct impact on their operations. However, they acknowledged that fluctuations in global oil prices could influence their business to some extent.
As for concerns about the conflict affecting the China-Europe Railway Express, Henan Xinning Modern Logistics reassured that their routes do not pass through the Middle East. Since launching operations mid-2025, the company has seen steady growth in rail transportation volume and plans to continue expanding its services.
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