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<Research>M Stanley Keeps Constructive View on Oil Tanker Shipping, Advises Underweight on Container Shipping
Recommend 13 Positive 24 Negative 24 |
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Morgan Stanley wrote in its research report that conflicts in the Middle East have affected the navigability of the Strait of Hormuz. Citing Clarkson, the report estimates that currently 7% of crude oil tanker fleet capacity, 5% of liquefied petroleum gas vessels, 4% of product tankers, 2% of container ships, 2% of bulk carriers, and 2% of liquefied natural gas vessels are located within the Persian Gulf. Morgan Stanley maintains a constructive view on oil tanker shipping, believing that the current reduction in compliant vessel supply has a positive impact on the industry. The increase in freight volume driven by oil-producing countries' production boosts demand, which is also favorable for the industry. Additionally, the bargaining power of major operators is unprecedentedly strong. Regarding container shipping, Morgan Stanley believes the current geopolitical tensions have limited impact on supply and demand. Rising oil prices will negatively affect container shipping due to increased cost pressures. Although short-term market sentiment is positive, the broker still expects the industry to enter a downward cycle because of excess supply. It recommends underweighting when stock prices rise. As for the aviation industry, Chinese airlines have not hedged fuel prices, and the surge in oil prices is a negative factor for airlines. However, the upward cycle will continue if oil prices fall back to normal levels after a short-term spike. Morgan Stanley maintains a constructive view on this industry. AAStocks Financial News |
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