HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rose more than 4% in the afternoon, as Venezuelan oil shipments were disrupted. This may continue to boost oil tanker freight rates in the short term.

COSCO Shipping Energy Transportation (01138) rose more than 4% in the afternoon, rising by 4.05% to HK$9.76 as of press time, with a turnover of HK$82.7149 million. On the news front, according to CCTV News, a large oil tanker seized by the US military in the waters near Venezuela is currently sailing to Houston, USA. The super-large crude oil tanker is said to be carrying about 1.85 million barrels of heavy crude oil from Venezuela, and its size is too large to enter the port of Houston directly, so it needs to anchor offshore and transfer the cargo to smaller vessels. It is also reported that the US plans to further strengthen sanctions and restrictions in the future, and to carry out "operational measures" on ships in international waters. This action by the US has raised warnings about the risks of non-compliant oil tanker transportation, but there is no clear information released as of now. According to Clarkson Research, Venezuela's crude oil exports currently account for about 2% of global crude oil trade. The agency predicts that the global crude oil tanker market will overall remain resilient by 2026. On the demand side, global crude oil trade demand is expected to grow moderately by 2026, while on the supply side, the size of the crude oil tanker fleet will be significantly more relaxed on a lower growth rate basis this year. In the short term, if Venezuela's crude oil shipments are disrupted, it may push some buyers to increase their purchases from "compliant" crude oil suppliers in the Middle East, leading to an increase in demand for "compliant" oil tankers. This will absorb more compliant oil tanker capacity and continue to push up tanker freight rates in the short term.