HK Stock Market Move | COSCO Shipping Energy Transportation (01138) surged over 4% as recent oil shipping rates remained high, benefiting from the favorable trade cooperation between the US and India in the oil shipping compliance market.

COSCO Shipping Energy Transportation (01138) rose more than 4%, up 4.26% as of the time of writing, at 15.43 Hong Kong dollars, with a turnover of 105 million Hong Kong dollars. On the news front, on February 3rd, Trump announced that he has reached an agreement with Indian Prime Minister Modi. India will stop buying Russian oil and will instead significantly increase its purchases of energy and other products from the United States. The US and India have reached a trade agreement, with the US lowering its equivalent tariff on India from 25% to 18%. Caitong believes that following the implementation of policies, India will stop buying Russian oil, with domestic demand shifting towards compliant crude oil, which is expected to further support the compliant market freight rates. In the medium term, with the increase in upstream production, geopolitical events, and tightened sanctions benefiting supply and demand, the freight rate center is expected to continue to rise. Guotai Haitong pointed out that since 2026, the geopolitical situation has been tense, ship owners' moods are high, and overseas ship owners are increasing their control of the charter market, with oil shipping freight rates remaining high recently. Last week, the Middle East to China VLCC TCE remained at a high level of above 120,000 US dollars. This suggests that ship owners' moods may continue to affect short-term freight rates, and it is advisable to pay attention to the trend of freight rate center compared to the previous year. The bank expects that the profits of oil tankers in the first quarter of 2026 will increase significantly year-on-year. It emphasizes that oil shipping is not just speculation on geopolitical tensions, but has a long-term logic of a "super bull market." It is optimistic that continued global oil production growth will drive demand for oil shipping, and the accelerated aging of oil tankers will ensure the rigid and continuous supply of compliant shipping capabilities.