OPEC cut to affect upstream sectors

OPEC's agreement to curb crude production for the first time in eight years will have more impact on the upstream sectors of China's oil giants, analysts said.

Domestic oil companies that focus on upstream sectors, including exploration and production, are likely to see a rise in revenue as the deal reached by OPEC on Wednesday is believed to help bolster global oil prices at least in the short term, said Wang Lu, an Asia-Pacific oil and gas industry analyst from Bloomberg Intelligence.

"The State-owned China National Offshore Oil Corp, which has more upstream business related to oil and gas exploration and production, will be more exposed to oil prices than its other two competitors - China National Petroleum Corp and China Petrochemical Corporation," said Wang.