COSCO Shipping Energy slides 5% in Hong Kong on Red Sea disruption

COSCO Shipping Energy Transportation (1138.HK) fell more than 5% in Hong Kong trading to HK$14.19, as Red Sea disruption continues to affect oil tanker shipping. The stock dropped 5.21% during the session.

According to media reports, Chinese very large crude carriers (VLCCs) have resumed transporting Saudi crude oil but are diverting around Africa instead of transiting the Red Sea. COSCO Shipping Group's VLCC "Yuanxi Lake" has arrived at the Sidi Kerir terminal on Egypt's Mediterranean coast to await loading.

Shares had surged more than 6% in the previous session after US Treasury Secretary Janet Yellen expressed optimism about the resumption of shipping through the Strait of Hormuz. Today's decline reverses those gains as renewed uncertainty over the Red Sea situation weighs on the oil shipping sector.