HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rises more than 3%, sanctions tightening is good for compliance market demand, VLCC freight rates increase significantly month-on-month.

COSCO Shipping Energy Transportation (01138) rose by over 3%, as of the time of writing, it is up 3.67% at HK$7.63, with a turnover of HK$124 million. On the news front, the US Treasury Department recently placed Russian oil traders, oilfield suppliers, and Russian energy officials on the sanctions list. Additionally, over 180 ships were suspected of forming a "shadow fleet", transporting Russian export oil under US sanctions and thereby facing sanctions themselves. Huachu Securities suggests continuing to monitor the sustainability and scope of the sanctions. If they continue to strengthen, it may significantly increase transportation difficulties and costs, potentially benefiting the demand for compliant markets and driving the retirement of old ships. The firm points out that under deepening sanctions, VLCC freight rates rose by +132% on a week-on-week basis, emphasizing investment opportunities in the tanker sector. EB SECURITIES stated that in 2024, the overall international oil shipping market will continue to be strong, with a full-year average of $34,896 per day for VLCC TD3C-TCE, a decrease of about 3% compared to the same period last year. In 2025, with the improvement of the macroeconomic environment and the expected increase in Chinese oil demand, as well as OPEC+ entering a period of production growth, oil shipping demand is still expected to increase in 2025. As a global leader in oil shipping, the company actively seizes opportunities for capacity expansion, optimizes fleet structure, and with the recovery of industry prosperity, its performance is expected to accelerate.