In today’s briefing:
- COSCO Shipping Energy (1138 HK): US Crude Export and China Import the Wild Cards?
COSCO Shipping Energy (1138 HK): US Crude Export and China Import the Wild Cards?
- US crude export growth is the positive driver while China import contraction is the negative for tanker ton-mile demand in last year which contraction 5.3% YoY.
- Significant room exists for a rebound in US oil export as oil majors announced plans to increase output. China’s import growth will recover in the next 12-18 months as well.
- US oil export to China needs 2x more VLCC than from Arabian Gulf. This bodes well for tanker rate, benefiting Cosco Shipping Energy (1138 HK) in the medium term.
Before it’s here, it’s on Smartkarma
