A report by Morgan Stanley noted that year-to-date oil tanker market volatility was lower than last year due to weak demand. The high of the spot market in the first quarter of this year was lower than the same period last year, but the second quarter was a low season in history. Crude oil tankers remained well above the balanced level of industry receipts, performing strongly in traditional peak seasons. The supply side is healthier mainly due to a significant reduction in new boat deliveries.

The bank believes that short-term share price adjustments brought about by seasonal factors have essentially ended, reapplying a positive outlook for 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 fundamental catalyst for the positive, and reaffirms the “upside” rating of Medium-Far Marine Energy (01138.HK), raising the target price from $10 to $11.1.