Research Reports

Oil prices fluctuated this week, driven largely by events in the Middle East, and are set to rise in the near term.

For the umpteenth time, talks of peace are interrupted by renewed military action.

This week was disappointing for tankers almost across the board, and sentiment remains soft.

Rising fuel and fertilizer costs from Iran tensions and drought conditions are straining US agriculture, with diesel prices up 72 per cent and urea fertilizer by 55 per cent, leading to increased farm bankruptcies by over 40 per cent in 2025.

As Posidonia approaches, tanker markets show resilience with significant LR2 sales totaling USD 285.8 million, while oil prices decline sharply, indicating potential increases in shipping activity amidst ongoing geopolitical tension.

Capesize rates surged on strong Pacific demand, with C5 increasing to USD 17.00, while Panamax P5TC rebounded to USD 21,086. Overall Affinity Dry Index fell 11.4 points amid varying sentiments and pressures across regions.

The WCSA dry bulk market is softening amid increased vessel availability, with near-term demand driven by charterers covering cargoes for mid-June, while significant congestion at the Panama Canal poses further operational challenges.

Amid rising scrutiny, the Net-Zero Framework (NZF) for shipping garners renewed support, as the IMO prepares for December deliberations.

Dry bulk fleet growth reached 1.5 per cent in 2026, with 211 vessel deliveries and 356 scheduled, amidst a high share of older units and declining newbuilding orders impacting future market dynamics.

Cuba's energy crisis escalates as US sanctions tighten, with protests erupting over severe fuel shortages. Meanwhile the EU revises its 2026 growth forecast down to 0.9 per cent amid ongoing geopolitical tensions in the Middle East.

Prices were on the decline last week until US strikes on Monday pulled them up, and fuel prices are rising.

Arbitrages in the Atlantic Basin are largely open, which has been reflected in certain routes.