On the afternoon of March 19, the natural gas sector continued its upward trend. Shanxi Blue Flame Holding Company Limited (000968.SZ) rose by the daily limit, following an earlier limit-up by Shanxi Guoxin Energy Corporation Limited (600617.SH). Kaitian Gas (920010.BJ) surged over 20%. Tianhao Energy (300332.SZ), Torch Energy (920014.BJ), Shouhua Gas (300483.SZ), Xinjiang Natural Gas (603393.SH), Shenzhen Gas (601139.SH), and ENN Energy Holdings (600803.SH) were among the top gainers.
The market movement follows reports from Iranian media on Wednesday that a major Iranian natural gas plant and several petrochemical facilities were attacked by the United States and Israel. Iran subsequently announced retaliatory measures and warned of potential strikes on oil infrastructure in Saudi Arabia, the United Arab Emirates, and Qatar, intensifying concerns about further disruptions to energy supplies.
After closing up 5.7% yesterday, Brent crude rose another 3% this morning to $107.2 per barrel, reaching its highest level since March 9. As of the latest update, Brent crude was up over 4.3% at $112.02 per barrel. Citibank recently predicted that Brent crude prices could surge to $120 per barrel in the coming days. The bank noted that if energy infrastructure across the Middle East faces widespread attacks and the Strait of Hormuz remains closed for an extended period, the average price of Brent crude could reach $130 per barrel in the second and third quarters of this year.
In addition, European natural gas prices also rose. At Wednesday's close, the benchmark Dutch TTF natural gas futures contract for April settled at €54.662 per megawatt-hour, up 6.02%. A report from HSBC Holdings indicated that due to supply shortages, European natural gas prices in 2026 will be 40% higher than previously forecast and are expected to remain elevated until 2027.
According to Cinda Securities, as upstream gas prices decline and domestic natural gas consumption recovers and grows, city gas distribution businesses are expected to achieve stable gross margins and significant increases in sales volume. Meanwhile, traders with low-cost long-term contracted gas sources and receiving terminal assets could potentially choose to expand imports or capitalize on international market resale opportunities to enhance profits, depending on market conditions.