Oil stocks are the main beneficiaries of rising price of crude oil. Among different industry players, CNOOC Limited will benefit most as its profitability is most sensitive to changes in oil prices. The price of crude oil is increasing gradually, with the support of oil cut deal of OPEC, the slowdown in US crude oil production growth and the improvement in global economy. CNOOC per se has a better management capacity compared with other industry players in terms of cost control, which brought surprise to investors on its interim result. In addition, the market expects that oil sector has a greater opportunity to undergo Public-Private Ownership Reform, aiming to lower companies’ operation cost and improve operational efficiency, and eventually boosting corporate profits. It is expected that CNOOC will become the main beneficiaries. With intact fundamental as well as attractive valuation, which has a P/B of 0.9x and dividend yield of 4.5%, it is recommended for long-term investment.