Oil Price CorrelationCNOOC’s share price closely tracks oil prices, with a strong correlation coefficient of 0.9, highlighting risk from oil price volatility.
Oil Price SensitivityCNOOC’s earnings are sensitive to oil prices, which would be dictated by output from the Organization of the Petroleum Exporting Countries (OPEC) and the US.
OPEC+ Production CutsThe potential unwinding of OPEC+’s 2 million barrels per day production cuts could dampen sentiment and weaken the oil price outlook towards 2025.