Asia Energy: Middle East escalation tracker: China PE utilizations recover in June, but apparent oil product demand continues to worsen

Research evidence excerpt

Asia Energy: Middle East escalation tracker: China PE utilizations recover in June, but apparent oil product demand continues to worsen

J P M O R G A N Asia Pacific Equity Research

17 June 2026

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the

territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

Asia Energy

Middle East escalation tracker: China PE utilizations

recover in June, but apparent oil product demand

continues to worsen

As the market debates the speed of Hormuz reopening, a common question is the Head of Asia Energy & Chemicals |

extent to which China will turn from shock absorber back to major buyer and oil Asia EV Battery

product exporter. Crude oil imports fell by an unprecedented 4.8 mbd between Feb Parsley Ong AC

to May (COVID: 4mbd drop in 2H20), and vessel tracking data indicates crude oil (65) 6882-8578

imports remaining weak at ~8mbd through July. We view 3mbd of China’s crude parsley.rh.ong@jpmorgan.com

oil demand destruction as temporary and anticipate a gradual recovery in imports J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

from August as chemical-related oil demand recovers and China resumes SPR Morgan Broking (Hong Kong) Limited

buying. Our top pick amongst E&P companies is Petrochina, for which we forecast Michelle Wong

1H26 DPS of Rmb0.27/sh (6.4% annualized H-share div yield), versus Sinopec at (852) 2800 8556

Rmb0.09/sh (4.8% annualized H-share div yield). Within chemicals, Nan Ya michelle.wong@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.