HK Stock Market Move | COSCO Shipping Energy Transportation (01138) falls more than 7% again, Middle East idle capacity re-entering the market, oil shipping market still oversupplied.

COSCO Shipping Energy Transportation (01138) fell more than 7% again, as of the press release, down 7.19% to HK$14.84, with a turnover of HK$577 million. In terms of news, the dispute between the US and Iran still exists, and more and more ships originally waiting for the market to recover in the Middle East route are approaching the Atlantic China Welding Consumables, Inc. market for ballasting. According to previous statistics by Frontline, as many as 55 VLCCs are stubbornly hovering empty outside the Gulf of the Middle East, refusing to go to the Atlantic China Welding Consumables, Inc. basin to compete for cargo sources. Frontline's CEO believes that idle capacity refusing to operate has caused VLCC spot freight rates to remain high. It is worth noting that the passage of ships through the Strait of Hormuz is blocked, and the volume of Middle East crude oil exports has sharply decreased. In addition, China's crude oil imports in April decreased by about 20% year-on-year to 38.47 million tons, falling to a three-year low. Guosen pointed out that against the backdrop of a blockade in the strait, the oil shipping market as a whole is in a situation of oversupply, and is currently in the off-season, the volatile trend of oil shipping freight rates is stable.