HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rose more than 4% as the demand for crude oil tankers in September was strong. With multiple factors at play, VLCC freight rates are expected to strengthen.

COSCO Shipping Energy Transportation (01138) rose more than 4%, as of the time of writing, it was up by 3.85% at 9.71 Hong Kong dollars, with a turnover of 1.12 billion Hong Kong dollars. On the news front, according to Global Times, US President Trump stated on the 15th local time that Indian Prime Minister Modi assured him in a conversation on the same day that India will stop buying Russian oil. There has been no official response from India so far. Bank of America Securities previously pointed out that COSCO Shipping Energy Transportation's first-half operating performance generally met expectations, with higher than expected net profit, mainly due to one-time gains. The bank raised its profit forecast for 2025 to 2027 to reflect the tailwinds brought by OPEC+ production increases and US sanctions tightening in the crude tanker market. The bank maintains a "buy" rating, believing that the group will be a major beneficiary of the recovery in the tanker market. Additionally, the Chinese Ministry of Transport recently announced that they will charge US vessels port service fees in response to the US imposing port charges on China CSSC, effective from October 14th. Goldman Sachs expects temporary disruptions in the effective capacity in the shipping industry segment, which will add upward risks to freight rates, particularly for very large crude carriers. Huatai pointed out that the demand for crude tanker market was strong in September. The bank believes that OPEC+ production increases, inventory replenishment, and inter-regional arbitrage demand, combined with seasonal demand growth, are expected to strengthen VLCC freight rates in 4Q25/1Q26.