Rising oil prices, related industries are not happy
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Industries that directly benefit from rising oil prices include oil and gas exploration and coal mining. Companies such as CNPC and CNOOC that are principal players in oil exploration have a direct result. Crude oil prices are not related to changes in production costs, so these companies benefit The largest part of the rise in oil prices is the pre-tax profits of companies.
The rise in oil prices will drive up the price of coal. The impact of rising oil prices on the petrochemical industry should be subdivided: the oil refining industry is suffering from the rise in international oil prices due to domestic regulation of refined oil prices, but it depends on whether the government can raise the price of refined oil products. It is reported that at present, PetroChina and Sinopec two groups have submitted documents requesting refined oil price increase. However, due to the pressure faced by the National Development and Reform Commission, whether it can be approved depends on whether the next international oil price can stand firm for more than US$70.
The prices and prices of different products in the chemical industry are significantly different from those in the downstream. Organic chemical raw materials, chemical fertilizers, chemical fiber, and plastic raw materials are delivered at a rapid rate and have a large margin (strong downstream capacity), while plastic products and rubber The price of products, pesticides, and other products is slow to pass downstream and their margins are small (downstream price is weak). Therefore, rising oil prices are favorable to organic chemical raw materials, chemical fiber, and plastic raw materials, and to plastics and rubber products. Pesticides and other companies are disadvantageous. Fine and daily-use chemicals are located at the end of the petrochemical industry chain, and the changes in oil prices are beyond their reach.
Other industries affected by high oil prices include -
Chemical building materials: Because of the fierce competition, chemical building materials have poorer downstream price conduction capacity, and chemical building materials as a whole have a negative impact due to high oil prices.
Electricity: As a similar energy source, the rise in oil prices directly pushes up the price of electricity and drives up the price of coal. As a result, rising oil prices can increase the gross profit of hydropower, but the gross profit of thermal power due to cost increases remains basically unchanged. Therefore, in the power industry, the price of oil rises only by hydropower. , wind power, nuclear power benefit.
Automobiles and construction machinery: Continuing high oil prices have caused consumers to worry about the increase in the cost of cars and newer machines, and have had a negative impact on the sales of automobiles and construction machinery. In addition, the transmission of crude oil prices to plastic parts has a negative impact on the production costs of complete vehicles and construction machinery manufacturers.
Glass: Heavy oil accounts for about 30% of the cost of glass. The high price of oil is also unfavorable for another important raw material, glass, soda ash. Therefore, high oil prices will increase the cost pressure of glass companies.
Transportation: Although the civil aviation industry can add high oil prices to fuel surcharges to absorb some of the increase, the higher discounts on air tickets can help to absorb the increase in fuel surcharges, especially for jet fuel, which accounts for a quarter of the cost of the civil aviation industry. The increase ultimately caused the civil aviation industry's expenses to increase as a result of rising oil prices. In the transportation of highways and waterways, the rise in oil prices will inevitably increase the operating costs of companies.