Morgan Stanley stated that there is potential for an increase in crude oil production in the fourth quarter of this year, which will be a positive catalyst for the fundamentals.
According to the Zhongtong Financial App, Morgan Stanley released a research report stating that the short-term stock price adjustment caused by seasonal factors has basically ended, and reiterated its bullishness on oil tanker shipping stocks. It also pointed out that there is potential for an increase in crude oil production in the fourth quarter of this year, which will be a positive catalyst for the fundamentals. Morgan Stanley also reaffirmed its "shareholding" rating on Cosco Energy, raising its target price from HKD 10 to HKD 11.1.
The report stated that the volatility of the crude oil tanker market has been smaller this year than last year. Due to weak demand, the spot market in the first quarter of this year was lower than the same period last year, but the second quarter is historically a slow season, and crude oil tanker freight rates are still far higher than the industry break-even level, and the performance is better than the traditional peak season, mainly due to a significant reduction in new ship deliveries and a healthier supply side of the industry.