economy
March 8, 2026
Oil price surge could boost these Chinese stocks, Goldman says
Goldman Sachs' Asia Pacific energy analysts predict two of China's three oil giants could benefit if Brent prices climb amid sustained Middle East tensions.
TL;DR
- Middle East tensions, including the Iran war, have disrupted shipping through the Strait of Hormuz, leading to a significant increase in oil prices.
- Goldman Sachs analysts predict that sustained high oil prices will benefit China National Offshore Oil Corporation (CNOOC) and PetroChina, potentially boosting their free cash flow by over 10%.
- Sinopec, another Chinese state-owned oil giant, is expected to be negatively impacted by the price surge due to its domestic product ceiling calculation mechanism.
- China is the world's largest importer of crude oil, with imports via the Strait of Hormuz accounting for a notable percentage of its energy consumption.
- Despite recent rallies, the valuations of Asian upstream oil companies remain relatively discounted compared to their developed market peers.
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