HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rose nearly 5% as VLCC freight rates surged recently. The outlook for oil shipping supply and demand is expected to continue to improve.

COSCO Shipping Energy Transportation (01138) rose nearly 5%, reaching a gain of 4.92% to HK$9.59 at the time of drafting, with a trading volume of HK$319 million. On the news front, recently, VLCC freight rates have surged. On September 12, the Clarkson VLCC-TCE index was $78,000, an increase of 39% compared to the previous week. Dongguan Securities analysis believes that the recent increase in oil shipping rates is driven by the stimulus of increased oil production and lower oil prices, as well as the increased intensity of EU and US sanctions boosting demand for compliant oil tankers. In the long term, with global oil prices expected to further decline in the background of increased production by the US and OPEC+, stimulating oil shipping demand, and the current aging fleet of oil tankers, increased sanctions by the US and EU may lead to the clearance of older vessels and reduce industry supply. The supply and demand pattern in the oil shipping industry is expected to continue to improve. Industrial recently pointed out that in terms of transportation demand, the main refineries in China have resumed operation to some extent, OPEC+ has been increasing production since April, oil prices overall have been declining, and oil shipping demand is expected to recover. In terms of supply, the aging of the oil tanker fleet continues, the EU, IMO, and other organizations are establishing stricter carbon pricing systems for ships, and since 2025, the US has been intensifying sanctions against Russia and Iran, leading to further clearance of oil tanker supply. With tightening supply and the option of demand recovery, oil tanker freight rates are expected to further increase; according to the company's promotional materials, for every $10,000 increase in VLCC-TCE, the company is expected to bring in a marginal income of RMB 952 million, and it is recommended that investors continue to pay attention.