CNOOC down 2% trend far beyond the oil price Credit Suisse low to see 6.57 yuan

International crude oil prices fell slightly, CNOOC this morning to go low, the share price is now down 1.85% to 10.62 Hong Kong dollars, 21.89 million shares.　　Credit Suisse issued a report that gave the unit a weaker-than-market rating, with a target price of HK $6.57, a sharp discount of 38% on market prices. The oil price moves beyond fundamentals and CNOOC moves beyond the price of oil, Credit Suisse points out. The fundamentals of crude are weaker than price movements, showing that excess capacity has reached its highest level since the start of the bull market, and that even if demand recovers, excess capacity will be hard to fall to 2003 years.　　Oil prices reflect recovery expectations, influenced by the dollar's weakness and inflationary expectations, and investors have expanded their exposure to crude oil, but the dollar's weakness may be largely past. Credit Suisse further argues that CNOOC is particularly vulnerable to a pullback in oil prices, as the long-term price implied by the current stock price is $90 per barrel. It is also vulnerable to disappointing earnings because higher growth costs will hit the income statement. and the value of stretching adds a layer of uncertainty.