- The handy segment in Northwest Europe saw strong demand early in the week, tightening tonnage and lifting TD18 rates to WS242.5, with further firming expected.
- Mediterranean Handies remained steady at WS240, though East Med may soften next week due to rising availability.
- MRs in the North held firm at WS165–170 as well-timed enquiry cleared tonnage; meanwhile, the Med stayed flat at WS170, supported by Handy and part-cargo demand.
- Panamax rates in Europe stayed quiet between WS110–115, while the Caribbean/US Gulf market saw a minor recovery, with TD21 expected to edge toward WS150.
Argentina is emerging as a major player in the global oil market, driven by significant growth in shale oil production from the Vaca Muerta formation, which is home to the world’s fourth-largest shale reserves. After years of underdevelopment, recent policy and economic reforms have accelerated investment and output, turning the tide for the country’s energy sector. Production, which was around 300,000 barrels per day last year, has surged to 450,000 barrels per day, with total output expected to reach 890,000 barrels per day by 2025 and continue to grow through 2030. This shift positions Argentina as a growing source of light tight oil exports in the years ahead, according to a report by Gibson.
Crude Tanker Market Overview – East and West
In the Middle East, the VLCC market started the week with a slow pace as charterers controlled the flow of activity for early August cargoes. With a large number of available vessels, charterers had the upper hand. Limited fresh enquiries and a growing list of ships kept rates under pressure, although there’s cautious optimism that demand could pick up next week as attention shifts to mid-August. Current rates are around WS46 for AG/East and WS30 for AG/US Gulf.
In West Africa, VLCC activity was limited. Despite some improvement in enquiry levels mid-week, the market lacked momentum. With a well-supplied tonnage list and softening sentiment in related markets, rates fell to WS48.5 for WAF/East.
Suezmax rates in West Africa declined to WS77.5 on the TD20 route. However, with CPC rates holding steady, owners in the Mediterranean have an alternative option. The East-bound premium remains near WS10, with several ballasters from the East offering flexibility.
The Mediterranean Suezmax segment mirrored the West African trend, with limited activity and a growing list of available tonnage. Meanwhile, the Aframax market started the week on a strong note but softened as delays in cargo readiness offset vessel shortages. Issues at Azeri and Libyan terminals further slowed activity. As a result, rates dropped by WS5–7.5 through the week, with little sign of a quick recovery.
In the Americas, VLCC demand remained muted. Although fixtures were concluded, they were insufficient to generate momentum. A few failed deals also weighed on sentiment. With a mix of ships from the East and local openings, the list is balanced, but the outlook remains weak. The Brazilian export market also faced sluggish enquiry, with rates slipping further. Current levels are assessed at $7.00M for USG/East and WS47 for Brazil/East.
The North Sea Aframax segment experienced a surge in activity later in the week, as several end-of-month fixtures were secured. Rates held around WS115, though many owners are now turning to the Mediterranean for better earnings. Transatlantic options remain, but interest appears to be fading compared to previous weeks.
Clean Tanker Market Trends – East and West
In the East, the LR2 segment saw a surge in activity as charterers moved swiftly to secure tonnage, significantly tightening availability. With freight to the West settling around $3.75 million and TC1 rates at WS130, the market entered the weekend in a position of strength. As the new fixing window nears, attention will shift to whether tightness persists or eases. LR1s were retested during the week, with older units and those with UMS history cleared for cargoes. Rates held at $3.0 million Westbound and WS150 on TC5. Although some tonnage remains, the list has thinned, providing charterers with less flexibility for meeting specific requirements.
For MRs in the Arabian Gulf, steady demand and a tightening list shaped the week. Despite the active environment, rates held firm with TC17 at WS225–230 and TC12 around WS170. As remaining end-of-month cargoes come into focus, owners are likely to push for rate increases next week.
The Mediterranean market saw improved momentum, particularly for MRs. These vessels became competitive on smaller Handy stems, leading to a wave of enquiries ranging from 30kt to 37kt. Prompt tonnage remains tight, and urgent transatlantic runs may fetch rates above current levels. Freight levels for Med–TA on naphtha settled near WS140, with WS130 seen as a fair benchmark, although more fixing is needed to test market direction.
Handy activity in the Med picked up as the week progressed. Initially divided by loading port, rates climbed from WS165 to WS190 for TC6, before stabilizing at WS180. However, with MR vessels increasingly taking on 30kt parcels, Handy owners saw pressure on their margins. The resulting slowdown led to fixtures closer to WS170 by the end of the week. Some softening is expected next week, though the extent remains uncertain.
Dirty Tanker Market Update – Handies, MRs, and Panamaxes
In Northwest Europe, Handy owners had a strong week as steady enquiry quickly absorbed available tonnage. With relets kept busy and multiple fixtures repeating at WS237.5, the market showed signs of moving toward WS240. However, just as the list tightened, fresh demand began to taper off. Most of the remaining tonnage now consists of West Med ballasters. The TD18 route closed at WS242.5, suggesting a firming trend is likely to carry into next week.
MRs in Northern Europe had a largely positive week. A timely rise in enquiry helped clear the list, preventing a cluster of open vessels from weighing on rates. Fixtures were recorded at 45 x WS165, and with the tonnage list quickly tightening, owners are now aiming to test WS170 on upcoming deals.
In the Mediterranean, MR activity was more subdued, but rate levels remained steady at 45 x WS170. Although the enquiry was limited, tight availability kept the market in balance. Owners secured employment by fixing Handy stems and part-cargoes, keeping the list manageable. A fresh round of fixing is expected to determine the next direction of the market.
Panamax activity in Europe was limited, with little movement in rates due to subdued enquiry. Market levels are expected to settle between 55 x WS110 and 115, pending further testing. In the Caribbean and US Gulf regions, rates slipped during the week, with TD21 closing at 50 x WS146.67. That said, upcoming tonnage has started to clear, which may push the next fixture closer to WS150. For now, the region is expected to hold steady with minor fluctuations.
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Source: Gibsons
