COSCO SHIP ENGY (01138) experienced a significant surge in pre-market trading on Friday, with its stock price soaring 6.34% to HK$7.71. The company's shares saw robust trading activity, with a volume reaching HK$80.8056 million.

The stock's impressive performance appears to be driven by reports of a potential increase in oil production by OPEC+. Media sources indicate that eight OPEC+ countries are set to hold an online meeting to determine October oil production levels. If further production increases are approved, OPEC+ could begin unwinding approximately 1.65 million barrels per day of production cuts, equivalent to 1.6% of global demand. This move would be more than a year ahead of the original schedule, potentially boosting the oil transportation market.

Adding to the positive sentiment, Bank of America Securities has maintained a "Buy" rating for COSCO SHIP ENGY, citing the company as a major beneficiary of the tanker market recovery. The firm raised its earnings forecasts for 2025-2027, reflecting the tailwinds brought to the crude oil tanker market by OPEC+ production increases and tightening U.S. sanctions. Analysts believe that current valuations do not fully reflect the return on equity prospects for 2025-2026, suggesting potential upside for investors. This optimistic outlook, combined with expectations of improved oil transportation market sentiment in Q4 2025, appears to be fueling investor enthusiasm for COSCO SHIP ENGY's stock.