The crude tanker market was generally firmer this week. VLCCs strengthened as a surge in largely undisclosed fixing activity significantly reduced available tonnage, tightening vessel lists in the Atlantic and supporting a gradual rise in rates from recent lows. Suezmaxes performed particularly well, with strong cargo demand in Brazil, Guyana and the US Gulf driving sharp rate gains amid a tightening position list. Aframaxes experienced a more mixed week: the Mediterranean market weakened initially under vessel oversupply before rebounding as activity improved, while the North Sea softened but found support from stronger US markets drawing ships westward. Overall, crude markets benefited from improving fundamentals, shrinking availability and firm sentiment across most key loading regions.
On the clean tanker side, performance varied considerably by size class. LR2s enjoyed the strongest conditions, with robust Arabian Gulf demand and limited tonnage availability. Owners enter next week with a firm outlook as the vessel list remains lean. LR1s also saw a tighter supply picture and increased behind-the-scenes activity, but publicly reported rates remained largely unchanged. In contrast, MRs struggled in both Northwest Europe and the Mediterranean, where significant vessel oversupply and weak cargo demand pushed rates lower across major routes. Some support emerged from strengthening US Gulf conditions, encouraging vessels to ballast. Handysize markets mirrored the MR trend, softening throughout Europe as charterers maintained pressure on rates. However, owners are approaching earnings levels which may establish a floor, suggesting further downside could become increasingly limited. Overall, clean tanker markets were split between very strong LR performance and continued weakness in the medium and smaller product tanker segments.