(Yicai) March 4 -- Leading Chinese oil and gas and shipping companies provided updates on the impact the Middle East conflict may have on their operations, after significant changes in market expectations for the supply of oil, natural gas, coal, and chemicals, as well as shipping prices.

The global crude oil market has been affected by multiple factors, including geopolitics and supply-demand patterns, with prices widely fluctuating, China Petroleum and Chemical Corporation, better known as Sinopec, China National Petroleum Corporation, and China National Offshore Oil Corporation collectively said late yesterday after the oil and gas index soared over the past two trading days. Short-term oil price volatility carries significant uncertainty, so investors must pay attention to risks, they noted.

The oil and gas index ended 9.8 percent higher yesterday, the gas index surged 9.3 percent, the shipping index soared 8.8 percent, and the energy equipment index jumped 5.9 percent.

The Strait of Hormuz is the key to the likely impact the Middle East conflict will have on oil prices. The average daily oil trade through the strait was about 20 million barrels in 2024, accounting for over a quarter of global seaborne oil trade, according to data from the US Energy Information Administration.

About 84 percent of crude oil and condensate that flowed through the Strait of Hormuz went to Asia in 2024, with 83 percent of the liquefied natural gas following the same direction. China, India, Japan, and South Korea received about 69 percent of the crude oil and condensate.

China imported on average 11 million barrels of crude oil per day in 2024, with 44 percent arriving via the Strait of Hormuz.

Haimo Technologies Group, a leading oilfield equipment manufacturer, noted that its future oil and gas equipment sales and service businesses in the Middle East might be negatively impacted if the tensions in the region continue or extend to other major oil and gas resource countries in the area.

In addition, multiple listed companies have provided updates on the cost impact brought by the surge in international oil prices caused by the Middle East conflict and the effect on transportation costs and cycles in certain regions on investor interaction platforms over the past two days.

Hainan Strait Shipping said fuel accounts for less than 20 percent of its operating expenses, so oil price volatility is a manageable part of overall costs. The maritime transportation company is offsetting rising oil prices by optimizing shipping speeds and routes and conducting timely bulk fuel purchases.

Shenghang Shipping's international waterway transportation business for hazardous chemicals is mainly concentrated in Northeast Asia, Southeast Asia, and India, and does not involve Middle East routes, so the conflict has no direct impact on its business operations, the Nanjing-based firm noted. However, the international oil price fluctuations triggered by the conflict will have a certain effect on its operations, it added.

Regarding investors' concerns about whether the Middle East conflict would affect the China-Europe Railway Express, Henan Xinning Modern Logistics said that its relevant routes do not involve the region. Since the start of operations in mid-2025, the company's transportation volume on the railroad has steadily increased, it noted, adding that it will continue relevant development.

Editor: Martin Kadiev