North Korean Missile Test Makes PetroChina a Buy (PTR)

Everyone knows that Pyongyang fired seven missles into the Sea of Japan Wednesday. That drove up crude oil - because people got scared about the security of Asia's fuel supplies...

Pyongyang just intensified the Great Game out here to secure energy supplies.

One interesting such deal is that unlisted China National Petroleum Corp. [CNPC] might buy US$3bn worth of shares of Russia's Rosneft when it lists in Moscow and London around the middle of July.

But if CNPC buys the shares, here is what it wants in return, according to Wednesday's South China Morning Post :

* Either that Rosneft expands an existing $ 6bn contract to supply more crude to CNPC, or
* That CNPC enters a joint venture deal in one of Rosneft's assets.

Money making implication: Buy NYSE-listed PetroChina (PTR). It is owned by CNPC, and is China's largest integrated oil company. A deal with Rosneft would further secure China's long term energy supplies.

PTR 1-yr chart: