Surge of Nearly 8% in Intraday Trading for COSCO SHIP ENGY as Short-Term Tanker Rates Expected to Spike

Deep News07-03 10:13

COSCO SHIP ENGY (HKEX: 01138) saw a near 8% increase during intraday trading. At the time of writing, the stock price is up 3.26% to HKD 14.24, with a turnover of HKD 99.63 million.

Guosen Securities analysts point out that over the past week, as the Strait gradually resumed normal passage, inflated freight rates in the Middle East began to converge downward due to an increase in actual transaction volumes. Concurrently, westbound ballast capacity started shifting eastward, causing the high freight rates from the Middle East to spill over to the US Gulf and West Africa. This resulted in a significant week-on-week increase in freight rates for the key VLCC routes from the US Gulf to China and from West Africa to China. The firm notes that in the short term, with the Strait of Hormuz returning to normal operations, tanker freight rates are expected to experience a substantial spike due to supply chain disruptions and the scramble for oil shipments.

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