CNOOC Shares Surge Over 3% in Morning Trading as Global Oil and Gas Markets Face Renewed Pressure

Stock News
03/19

CNOOC (00883) rose more than 3% in morning trading. As of the time of writing, the stock was up 3.39%, trading at HK$29.26, with a turnover of HK$3.553 billion. The global oil and gas market has experienced renewed turbulence following recent developments. On Wednesday local time, after Israel attacked Iran's South Pars gas field—the world's largest—Iran warned several countries around the Persian Gulf that numerous energy assets have become "legitimate targets." BOC International noted that as a pure upstream exploration and production company, CNOOC stands to benefit directly from the recent rise in oil prices. Although the marginal benefit of further oil price increases is diluted by China's windfall tax, the negative impact on the company is relatively limited due to its high proportion of overseas production. J.P. Morgan previously released a research report stating that if oil prices remain above $80 per barrel for an extended period, it would create significant upside potential for major oil companies. Among the Asian energy firms covered by the bank, CNOOC is the most sensitive to oil price movements due to its oil production accounting for 70% of its output structure. J.P. Morgan raised its earnings per share forecasts for CNOOC for 2026 and 2027 by 41% and 19%, respectively, reflecting higher oil price expectations.

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