Global crude tanker markets continued to display resilience, with VLCCs holding triple-digit earnings and Suezmax and Aframax segments showing varied regional dynamics. While activity has slowed and much of the fixing has moved off-market, tightening tonnage lists and healthy sentiment are keeping rates supported.
VLCC Market Holds Firm Amid Quiet Activity
VLCC rates remained within the W125–130 range for MEG/East runs, supported by modern, unobstructed tonnage. Despite most fixtures happening privately, market sentiment is steady, as reflected by TD3C at W126.67 highlighting wide differences in assessment among market participants.
Position lists remain slightly tight in both East and West of Suez, although dominated by oil company and trader relets. While some profit-taking is expected, analysts believe any downside will be limited. Triple-digit worldscale levels appear stable for now, translating into daily earnings above USD 100,000 an attractive environment for VLCC owners.
Suezmax and Aframax Segments Show Regional Contrasts
Suezmax: Tonnage Clears but Demand Tempered
A surge in vessels going on subs helped clear the previously heavy supply in the West. However, demand has softened as VLCCs absorbed more early-December stems in West Africa, reducing Suezmax opportunities. Relets have also receded significantly.
Around seven WAF stems still remain for early December, and with Aframaxes weakening in the U.S., some charterers may shift to smaller vessels, reducing U.S. Gulf pull on Suezmax tonnage. Still, strong VLCC sentiment is expected to lend some indirect support.
Aframax: Mixed Trends in North Sea and Mediterranean
In the North Sea, the market remained relatively quiet as relets returned to cover a bulk of stems. Bad weather affecting offshore operations may trigger additional STS requirements. The list is balanced, and ballasting remains an option to reduce idle time, offering some stability.
In the Mediterranean, the expected correction has materialized for late-November dates. Although early positions have been cleared, many ships open between 21–26 November perfectly aligned with the next fixing window. Rates may soften slightly, but owners are likely to resist further drops, aiming to set a new floor around the WS190 level depending on voyage type.
While activity across tanker sectors has quieted, market fundamentals remain supportive. VLCCs continue to anchor the broader sentiment with steady triple-digit rates, Suezmaxes benefit from improving tonnage balance despite softening demand, and the Aframax segment shows localized pressure but pockets of stability. With earnings still attractive and December programs advancing, the tanker market appears set to retain its firm footing in the near term.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Fearnleys
