Brent crude oil futures once approached $140 Experts remind: beware of "climbing high and falling heavy"

On March 7, WTI crude oil futures hit an intraday high of $130.
5/barrel, and Brent crude futures hit a high of $139.
13/barrel
.
A number of experts interviewed said that the escalation of geopolitical conflicts has led to the rise
in oil prices.
The rise in oil prices has a differentiated impact
on the industrial chain.
Once the geopolitical situation eases, oil prices may "rise and fall"
.

Huang Haosheng, head of Shanghai Linker Group Co.
, Ltd.
, said that the rise in oil prices has exceeded the actual prosperity of crude oil fundamentals, mainly because of the impact of geopolitical conflicts, the market's worries about the supply side of crude oil are heating up
.

Oil prices continue to rise sharply, and the impact on upstream and downstream oil enterprises is two-way
.
Zhongzhou Special Materials, an A-share listed company, said on the investor interactive platform that the company's main business is to provide high-temperature corrosion-resistant alloy materials and products to the oil and gas industry, and the rise in oil prices has a positive impact
on the company's performance.

The rise in international oil prices will boost the development of the upstream oil and gas drilling and production industry, but it will also have a certain negative impact
on the downstream petrochemical industry.

Oil prices continue to soar, causing the downstream chemical industry to skyrocket
.
Huang Haosheng said that the downstream chemical products of crude oil, such as olefins, aromatics, PTA, etc.
, have been "dragged" by oil prices to rise, but their increase is far from keeping up with the rise in oil prices
.
If the cost is calculated at real-time prices, most downstream industries have entered the loss range
.

"If crude oil prices usher in a downward cycle, downstream chemical product prices will also fall
.
" Huang Haosheng said
.

China Merchants Securities believes that the middle and downstream enterprises in the crude oil industry chain are relatively scattered, fiercely competitive, and have weak
bargaining power.
As oil prices soar, they are unable to pass on costs to users, resulting in compressed profit margins
.

Zhong Jian, vice president of Zhuochuang Information and president of the research institute, said that the current impact on oil prices is "pulse in nature", and a major correction
is expected in the future.

Zhong Jian believes that a number of factors will become the driving force
for future oil price declines.
On the one hand, the retail price of gasoline and diesel in the United States has been at a historical high, and the US polling agency said that this has reached the bottom line of unaffordable consumption of the people, and will force the US government to take more vigorous measures to suppress oil prices
.
On the other hand, after mid-March, the Fed's interest rate hike and balance sheet reduction policy will have an impact on commodities, including crude oil, and the magnitude of the impact depends on the strength
of the Fed's monetary policy.

In addition, positive factors to ease the tight supply of crude oil have also
surfaced.