Crude tanker markets showed mixed trends as VLCC rates firmed slightly due to tighter tonnage in the West, particularly from Brazil. However, geopolitical tensions between the US and Iran threaten to redistribute tonnage and put downward pressure on rates in the coming week. Suezmax rates in West Africa declined to WS 232.5 amid increased competition and firming Aframax rates in the US Gulf suggest a stable but cautious market. In the East, expectations of a supply increase due to fewer STS operations from Fujairah could negatively impact rates next week.
Product tanker markets faced increased pressure, particularly for AG LR2s where demand weakened in conjunction with renewed hostilities, causing rates to drop significantly on certain routes. Nonetheless, the North West Europe product market remained firm, driven by tightening vessel availability and increased activity, while overall sentiment remained cautious as geopolitical risks loom.