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Amid escalating geopolitical tensions threatening maritime trade routes, major state-owned refiners in China and India have struggled to secure Very Large Crude Carriers (VLCCs) for June loadings from the Persian Gulf. According to reports, a sharp surge in freight costs has disrupted spot purchases, with PetroChina reportedly rejecting six offers for tankers to load Basrah crude from Iraq. These disruptions follow a tripling of freight rates, rendering supply procurement uneconomical for several Asian refineries.
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Sign InThis disruption reflects growing pressure on global energy supply chains, as the price spike coincides with heightened concerns over navigation safety in the Strait of Hormuz. Looking at sector performance, PetroChina (0857.HK) closed at HKD 9.18 on June 18, 2026, while Sinopec (0386.HK) stood at HKD 4.14 per market data. This crisis unfolds as economic data from India showed annual inflation holding at 3.93% in June, adding further pressure on import costs for one of the world's largest oil consumers.
Investors should watch current price levels, with 0857.HK trading between HKD 9.09 and 9.46, while 0386.HK moves near its daily low of HKD 4.11 (close June 18, 2026). According to the economic calendar, upcoming Indian Balance of Trade data will be a key catalyst to assess the impact of freight costs on the trade deficit. Furthermore, any updates regarding safe passage guarantees in the region will be critical in determining whether freight rates stabilize or continue to stress the physical oil market.