Chinese crude oil stocks low half of Goldman Sachs reiterates buy CNOOC

Chinese crude oil stocks failed to break out of the weak market this morning, and CNOOC (00883-HK) fell by 2.83% to HK $9.62 a half-day, while PetroChina (00857-HK) also spat 2.4% to HK $8.55. Goldman Sachs issued a report saying it proposed to buy CNOOC and sell Chinese oil, in the belief that CNOOC's growth and return rate is higher, and valuations more attractive Refers to CNOOC's 8.9 times-fold earnings ratio, lower than the Chinese oil stocks, the recent fall in CNOOC's share price has provided investors with the opportunity to buy timing, and CNOOC in the 2009-10 fiscal year's output growth prospects are strong, the rate of return in the best in the industry, cost control is good. The CNOOC purchase rating, therefore, remains in the assured Buy list with a target price of HK $13.