China's three oil majors — CNOOC, PetroChina and Sinopec — listed on HKEX and tracked by Brent crude. Combined, they refine and produce more oil than Saudi Aramco.
China's three national oil companies — CNOOC, PetroChina and Sinopec — operate differently but all correlate strongly with Brent crude. CNOOC is the purest upstream play (exploration and production only). PetroChina spans the full value chain. Sinopec is refining-heavy and can actually benefit from falling crude prices through margin expansion.
CNOOC (0883.HK) is China's largest offshore oil producer and the most directly leveraged to Brent. With production costs of approximately $30-35/bbl, CNOOC generates exceptional returns when Brent is above $60. The current level of $89/bbl still implies strong earnings but the Hormuz premium is fading.
China Shenhua and China Coal Energy are tracked by the domestic coal price rather than Brent. China's coal demand is driven by power generation and steel production — both tied to domestic PMI at 51.4. Coal is in neutral zone — neither cheap nor expensive.
For informational purposes only. Not financial advice. See disclaimer.