On March 7, WTI crude oil futures hit $130.5/barrel and Brent crude oil futures hit $139.13/barrel. Several experts interviewed said that the escalation of geographical conflicts led to the rise of 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 increase in oil price has exceeded the actual prosperity of crude oil fundamentals. The main reason is that the market is increasingly worried about the crude oil supply side due to geographical conflicts. The continuous sharp rise in oil prices has a two-way impact on upstream and downstream oil enterprises. A-share listed company Zhongzhou specialty materials said on the investor interaction 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. The oil price continued to rise sharply, causing the cost of the downstream chemical industry to soar. Huang Haosheng said that recently, the downstream chemical products of crude oil, such as olefins, aromatics and PTA, have been "dragged" up by oil prices, but their increase is far from keeping up with the increase of oil prices. If the cost is measured at the real-time price, most downstream industries have entered the loss range. "If crude oil prices usher in a downward cycle, the prices of downstream chemical products will also fall." Huang Haosheng said. China Merchants Securities believes that the enterprises in the middle and lower reaches of the crude oil industry chain are relatively scattered, highly 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 Zhuo Chuang information and President of the Research Institute, said that the impact of the current Russian Ukrainian conflict on oil prices is "impulsive", and it is expected that there will be a major correction in the follow-up. Zhong Jian believes that many factors will become the driving force of the future decline in oil prices. On the one hand, the retail price of gasoline and diesel in the United States has been at an all-time high. American polling agencies say that this has reached the unbearable consumption bottom line, which will force the U.S. government to take greater measures to suppress oil prices. On the other hand, after mid March, the official implementation of the Fed's interest rate increase and table reduction policy will have an impact on commodities including crude oil, and the degree of 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. According to CCTV reports, all parties generally believe that the negotiation of the relevant parties to the comprehensive agreement on the Iranian nuclear issue has entered the "final stage", and Iran is preparing to return to the international oil market after reaching the agreement. Analysts said that if the sanctions against Iran are lifted, a large amount of oil supply is expected to return to the market. (Xinhua News Agency)