HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rose more than 4% in the afternoon, benefiting from the OPEC+ production increase cycle. Sanctions against Russia may also be good for the compliance market supply and demand.

COSCO Shipping Energy Transportation (01138) rose more than 4% in the afternoon, rising 3.82% to 6.79 Hong Kong dollars, with a turnover of 145 million Hong Kong dollars as of the time of publication. On the news front, OPEC+ agreed on Sunday to increase oil production by 547,000 barrels per day in September, which will end the recent production cut action earlier than planned. Huayuan Securities pointed out that crude oil transportation is expected to benefit from the positive fundamentals of the OPEC+ production increase cycle and the Fed interest rate cut cycle, as well as the increased uncertainty in the Middle East geopolitics strengthening VLCC freight rates. With the acceleration of OPEC+ production increases, it is expected that the oil shipping market sentiment in Q4 2025 will significantly improve. In addition, Guotai Haitong released a research report stating that according to ship broker Gibson, Trump may limit Russian oil exports through secondary tariffs. Russian oil exports have decreased by nearly 30% in the past two weeks, with decreases of about 60% in India and 20% in China. If the US strictly enforces sanctions against Russia, it may continue to lead to a decline in oil shipping efficiency and changes in trade structure, which is likely to benefit the improvement of market supply and demand compliance. The effects of increased oil production in the second half of the year and the performance of the oil shipping industry can be expected, with the option of oil price decline.