COSCO SHIP ENGY (01138) fell more than 5% in trading, declining 5.43% to HKD 10.45 by the time of writing, with a turnover of HKD 453 million. The oil shipping market is currently facing mixed signals. Due to growing concerns over supply surplus, OPEC+ has agreed to a modest production increase for December while pausing output hikes for Q1 2026.
Crude oil shipping typically benefits from OPEC+ production expansion cycles. Analysts note that the suspension of Section 301 measures could help mitigate risks related to shrinking effective dry bulk shipping capacity. Meanwhile, Guotai Haitong Securities highlights that the U.S. has escalated sanctions against Russia, pushing VLCC TCE rates above USD 120,000.
In Q3 2025, international crude oil shipping profits for oil transport companies showed significant year-on-year growth, aligning with freight rate trends. Domestic tanker operators continued to outperform industry freight indices. Full-year 2025 and Q4 earnings for tanker companies are expected to hit a decade-high. The outlook for 2026 remains positive, with potential for a strong bull market in oil shipping.