The Penghua Oil exchange-traded fund recorded a net intraday subscription of 61 million shares on July 24 as investors purchased oil sector exposure after recent weakness. The fund last traded at 1.27 yuan at 2:00 p.m. local time.

Average daily tanker traffic through a key Middle East strait has declined to fewer than 10 vessels since July 12. The reduction has postponed expectations of a recovery in regional crude supply and provided near-term support for oil prices.

Short-term oil prices remain primarily influenced by geopolitical risks. Over the medium to longer term, any easing of conflict could leave global crude benchmarks vulnerable to pressure from excess supply. Unexpected geopolitical developments retain the potential to produce sudden price moves and heighten volatility.

The fund tracks the CSI Guosen Oil and Gas Index. As of June 30 its ten largest constituents were Jerry’s Shares, PetroChina, CNOOC, Sinopec, China Merchants Shipping, Guanghui Energy, COSCO Shipping Energy Transportation, Jovo Energy, Xinao Shares and China Merchants Energy Shipping. Those holdings represented 71 percent of the index.