<div id="readability-page-1" class="page"><div id="news-body">(Yicai) March 9 -- Shares of China’s energy giants soared as the worsening conflict in the Middle East sent crude oil prices to a near four-year high, with investors keen on the country’s three state oil majors.China National Offshore Oil Corporation [SHA: 600938] closed 7.1 percent higher at CNY43.36 (USD6.27) per share in Shanghai today, having earlier risen by its 10 percent daily trading limit. PetroChina [SHA: 601857] added 5 percent to CNY12.92 (USD1.87), while China Petroleum &amp; Chemical Corporation [SHA: 600028], or Sinopec, gained 1.7 percent to CNY7 (USD1).Since the start of the month, the value of CNOOC’s stock has climbed 21 percent, while PetroChina and Sinopec have jumped by 19 percent and 8 percent, respectively.West Texas Intermediate and Brent crude oil futures both soared by nearly 30 percent to around USD120 per barrel today, the highest since July 2022. As of 4 p.m. Beijing time, WTI retreated to USD102.83 per barrel, while Brent crude was quoted at USD107.62 per barrel.The price spike follows military attacks on Iran by the United States and Israel that began late last month and have effectively brought shipping in the Strait of Hormuz, the main maritime artery connecting the Persian Gulf and the Indian Ocean, to a near standstill.At the same time, the national oil companies of major Middle Eastern producers the United Arab Emirates and Kuwait have announced production cuts, leading to a further surge in international oil prices.In the near term, the potential for further upside in oil prices will depend on whether flows through the Strait of Hormuz resume. Continued disruptions could force additional output cuts by major Middle East oil producers, significantly raising the risk of a global supply shortage.Price dynamics could mirror the spike seen during the early stages of the Russia-Ukraine conflict in 2022, according to a research report published today by China International Capital Corporation.Assuming that the disruption in the Strait of Hormuz ends within two weeks, Brent crude is likely to trade between USD70 and USD80 per barrel, CICC predicts. But if interruptions extend into the second quarter, the price midpoint could climb above USD120 per barrel.Editors: Dou Shicong, Tom Litting</div></div>

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Chinese energy stocks surged as Middle East tensions drove crude oil prices to a near four-year high. China National Offshore Oil Corporation rose 7.1%, PetroChina increased by 5%, and Sinopec gained 1.7%. Since March, CNOOC's stock has climbed 21%, while PetroChina and Sinopec have risen 19% and 8%, respectively. Crude oil prices soared nearly 30% to around $120 per barrel, influenced by military actions in Iran and production cuts from UAE and Kuwait. Future price movements depend on the resumption of shipping through the Strait of Hormuz, with potential for significant global supply shortages if disruptions continue.

Chinese Oil, Gas Stocks Surge as Middle East Crisis Drives Up Prices