SunSirs: Energy Industries Bulk Commodity Intelligence (December 29, 2025)

Macroeconomics

1. [Fiscal Policy] The National Fiscal Work Conference was held in Beijing. The meeting pointed out that in 2026, a more proactive fiscal policy will continue to be implemented; the scale of fiscal expenditure will be expanded to ensure necessary spending; and the combination of government bond instruments will be optimized to better leverage the effectiveness of bonds. The meeting required that in 2026, fiscal work should focus on six key tasks, including adhering to domestic demand as the main driver, vigorously boosting consumption, and increasing investment in key areas such as new productive forces and the comprehensive development of people; accelerating the cultivation and growth of new drivers of growth, and further increasing fiscal investment in science and technology; and further strengthening basic guarantees and safety nets to promote employment and income growth for residents.

2. [Industrial Value Added] Ministry of Industry and Information Technology: The value added of industrial enterprises above designated size is expected to increase by 5.9% year-on-year in 2025. Data shows that from January to November this year, the value added of high-tech manufacturing and equipment manufacturing above designated size increased by 9.2% and 9.3% year-on-year, respectively.

3. [Industrial Enterprise Profits] National Bureau of Statistics: From January to November, the total profits of industrial enterprises above designated size nationwide reached 6,626.86 billion RMB, a year-on-year increase of 0.1%. From January to November, the mining industry achieved total profits of 789.63 billion RMB, a year-on-year decrease of 27.2%; the manufacturing industry achieved total profits of 5,031.79 billion RMB, an increase of 5.0%; and the electricity, heat, gas and water production and supply industry achieved total profits of 805.44 billion RMB, an increase of 8.4%.

4. [Electricity] According to the National Energy Administration, as of the end of November, the cumulative installed power generation capacity nationwide reached 3.79 billion kilowatts, a year-on-year increase of 17.1%. Of this, solar power generation capacity was 1.16 billion kilowatts, a year-on-year increase of 41.9%; and wind power generation capacity was 600 million kilowatts, a year-on-year increase of 22.4%. From January to November, the cumulative average utilization of power generation equipment nationwide was 2,858 hours, a decrease of 289 hours compared with the same period of the previous year.

5. [Japan CPI] Japan's Tokyo core CPI rose by 2.3% year-on-year in December, a significant slowdown from the previous value of 2.8%, and also lower than market expectations of 2.5%, reaching a 14-month low.

Energy

1. [Crude Oil] On December 26, international crude oil futures fell. US WTI crude oil futures for the February contract settled at $56.74 per barrel, down $1.61 or 2.8%. Brent crude oil futures for the February contract settled at $60.60 per barrel, down $1.60 or 2.6%.

2. [Crude Oil] China National Petroleum Corporation (CNPC) announced on December 29th that as of December 28th, the amount of carbon dioxide injected by its Xinjiang oilfield this year exceeded 1 million tons, becoming the first oilfield in my country to achieve an annual carbon injection of one million tons. This marks a crucial step for the Xinjiang oilfield in the large-scale application of CCUS (carbon capture, utilization, and storage) technology, providing important technical support and practical pathways for achieving carbon peaking and carbon neutrality goals in my country's oil and gas extraction.

3. [Crude Oil] According to reports, Iraq, the Kurdistan region, and international companies have reached an agreement to extend the oil export agreement for three months until March 31st next year.

4. [Fuel Oil] Data from the Singapore Enterprise Development Board (ESG) shows that as of the week ending December 24th, Singapore's fuel oil inventories increased by 1.058 million barrels to a two-week high of 25.716 million barrels.

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