Institution: The oil industry has entered a prosperous cycle.

Sinokor Securities believes that the valuation and structural opportunities on the oil transportation side and asset side are expected to continue, with the supply chain restructuring brought by geopolitical conflicts becoming the core driver of this round of oil transportation cycle. The significant increase in concentration brought by Sinokor's rapid expansion of capacity has become a revolutionary change in the VLCC supply side of this round of the cycle, with an expected precedent set by forming a quasi-alliance with MSC and Trafigura to pioneer "sailing out with higher prices" in the oil tanker market during certain periods. Compared to the container and bulk cargo markets, the VLCC market is relatively small in scale, and the trends of quasi-alliance and "sailing out with higher prices" have a more significant and lasting impact on the restructuring of freight rate mechanisms. Against the backdrop of geopolitical dominance, events such as the Iran incident strengthen the cyclical momentum of the oil transportation industry, and the profits of leading oil transportation companies are expected to reach new highs in 2026.