High oil prices may persist for a long time, highlighting CNOOC's cost advantage.

The Strait of Hormuz has been closed for 1 month. The original daily crude oil transportation volume of 20 million barrels has now accumulated a shortage of over 600 million barrels. More seriously, even if transportation resumes, the damage to infrastructure such as refining, pipelines, and LNG caused by the war is still unknown how long it will take to repair. Oil and natural gas have actually entered a stage of high cost and high uncertainty.

Under these circumstances, CNOOC's cost advantage deserves long-term attention. Among the "three oil giants," CNOOC is an oil and gas company primarily focused on upstream exploration and development. Its revenue mainly comes from selling oil and gas, and its average cost per barrel is about $27.90/barrel, lower than ExxonMobil, Chevron, Occidental Petroleum, etc. In the current environment where Brent crude oil prices have broken through $100, this advantage is further amplified.

Related ETFs:

The ChinaAMC Oil ETF (159189) tracks the SZSE Oil & Gas Index. CNOOC's weight is 14.36%, making it the index with the highest CNOOC weighting in the entire market.