The analyst rating from JPMorgan reflects a preference for upstream companies over refiners in the context of rising international oil prices, which have surpassed USD100 per barrel. This preference is based on the expectation that Chinese government price controls will come into effect. JPMorgan has adjusted its target prices for companies like PetroChina and CNOOC, indicating a positive outlook for these upstream firms due to their potential for significant upside as oil prices are projected to remain high in the long term. Specifically, they raised the target price for PetroChina from HKD10 to HKD13 and upgraded CNOOC's rating from Neutral to Overweight, increasing its target price from HKD23 to HKD31.
