Hong Kong stocks concept tracking | Crude oil prices rise driving freight costs soaring. Positive sentiment for oil shipping companies improves (with concept stocks).

The light crude oil futures price for delivery in February on the New York Mercantile Exchange rose by $2.54 to close at $80.04 per barrel, up by 3.28%; while the Brent crude oil futures price for delivery in March rose by $2.11 to close at $82.03 per barrel, up by 2.64%. WTI crude oil futures touched $80 per barrel for the first time since August last year, hitting a new high since July last year. This was due to new sanctions by Western countries against Russia beginning to affect oil supply, as well as tightening US inventories. Buyers of Russian oil are increasingly turning to other supply countries, with some countries including India stating that they will ban sanctioned tankers from entering their ports following the US's harshest sanctions yet. Shipping costs are soaring, and the spot pricing model in the US has also changed. This adds momentum to the already strong oil prices at the beginning of this year. On the other hand, contrary to the widespread expectation of a significant global oil inventory surplus, US crude inventories have fallen for 8 consecutive weeks to the lowest level since April last year. The US Treasury recently added Russian oil traders, oilfield suppliers, and Russian energy officials to its sanctions list, as well as imposing sanctions on over 180 vessels suspected of being part of a "shadow fleet" transporting Russian oil exports under US sanctions. Related Hong Kong stock of oil shipping market: COSCO Shipping Energy Transportation (01138): COSCO Shipping Energy Transportation announced that it expects a net profit attributable to shareholders of the listed company of approximately RMB 3.96 billion in 2024, an increase of approximately 17.2% compared to the same period last year. Morgan Stanley believes that the US sanctions may gradually drive the "shadow fleet" out of the market, which will benefit the legitimate tanker market. The bank believes that the negative sentiment from weaker-than-expected performance in the peak season reflecting the fourth quarter of 2024 may improve. The bank holds a positive view on COSCO Shipping Energy Transportation.