$CNOOC(00883.HK) saw a slight gain, while $ExxonMobil(XOM.US), $United States Oil Fund LP(USO.US), and $Us Brent Oil(BNO.US) all closed lower, with declines around one point. Oil prices fell 8.66% this week, yet this Hong Kong stock moved against the trend.
$CNOOC(00883.HK)'s cost line has always been among the lowest in the sector. When oil prices fall, its relative advantage in profit margins is amplified. Supported by dividend yields, it makes sense that it couldn't fall further. However, $ExxonMobil(XOM.US) is also a low-cost large-cap stock, yet it faithfully follows the movement of oil prices.
Given the same oil price, one side is priced based on dividends while the other is priced as a commodity. How long can this divergence last?
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