Sinopec (NYSE: SNP), traditionally regarded as an integrated oil company, may see less influence from the oil price fall since its lowered refining cost may offset upstream oil/gas production loss.

       International crude price fell to a five-month low of 63.76 US dollar per barrel on September 12, resulting in the falling stock prices of PetroChina (NYSE:PTR) and CNOOC (NYSE:CEO), which respectively fell by 2.6% and 1.9% on the New York Securities Exchange on September 11.

       Asia’s largest oil refiner, Sinopec, whose stock price has long been the lowest among the Top Three, saw its stock price rise by 0.7%. On domestic A-share market, the company’s stock price rose as well, leading the Shanghai Stock Composite Index to rally sharply.

       Of course, CNOOC and PetroChina’s expenses on special gain tax, or windfall tax in Western terms, will fall as well if crude price fall. But it is believed that investment banks may have to lower their forecasts on the two’s second-half profit.

       Sinopec’s first-half profit also came from upstream production. But as a refiner importing 80% of its feedstock oil, Sinopec can see its refining loss to narrow to make up the upstream loss.