Oil ETF EasyFunds Rebounds to Red, Iraqi Crude Oil Exports Plummet as Production Drops Sharply; Institutions Forecast Sustained Improvement in Oil, Gas, and Petrochemical Industry Prosperity Over Medium and Long Term

What are the ripple effects of AI and Iraq’s sharp production decline on global oil prices?

As of March 23, 2026, 11:13 AM, the CSI Oil & Gas Index (399439) increased by 0.01%, the E Fund Oil ETF (159181) rose by 0.20%, with a turnover rate of 8.53% and a trading volume of 17.7319 million yuan. As of March 20, the E Fund Oil ETF (159181) reached a new high in its latest shares since inception.

On the news front, Iraq’s Basra Oil Company’s daily production has dropped from 3.3 million barrels to 900,000 barrels. Since the southern ports of Iraq have ceased oil exports, Basra Oil Company’s daily output has fallen from 3.3 million to 900,000 barrels. Current production has been reduced to about 30% of the level before February 28.

Recently, the oil price center has moved higher, coupled with an improved global refining capacity pattern, leading to a sustained upward trend in medium- and long-term oil, gas, and petrochemical industry prospects. Huachuang Securities pointed out that short-term oil price volatility is driving a rebalancing of industry chain inventories, with downstream shifting from replenishment to observation, and upstream experiencing passive inventory accumulation. In the medium term, downstream inventories are at historically low levels, and with the support of immediate demand, transaction volumes are expected to recover. If oil prices stabilize at high levels and demand rebounds, price increase potential will gradually materialize. In the long term, global refining capacity continues to shrink, and the US-Iran conflict has led to some refinery shutdowns, causing supply and demand to shift toward a tight balance. The asset-heavy nature of the industry suggests that short-term fluctuations will not alter the long-term trend of improving profitability.

The E Fund Oil ETF (159181), closely tracking the CSI Oil & Gas Index, selects securities of A-share listed companies involved in oil and gas exploration and development, oil and gas equipment and services, gas transmission and distribution, and sales, to reflect the overall performance of oil and gas industry listed companies on the Shanghai, Shenzhen, and Beijing Stock Exchanges.

The CSI Oil & Gas Index covers the entire oil and gas industry chain, with high weights in the “Big Three” oil companies, offering both high dividends and resilience. Additionally, the index has low valuation levels and strong anti-drawdown capabilities, providing a safety margin and medium- to long-term beta opportunities for high-valuation A-shares.

Whether optimistic about an upward cycle in oil prices or seeking high-dividend defensive assets, the E Fund Oil ETF (159181) is a high-quality tool for investors to position themselves in energy security and high dividend yields.