The crude tanker market had a generally disappointing week. In the VLCC segment, rates softened from recent highs as demand and Atlantic support began to normalize, although a relatively tight tonnage list and continued Middle East activity should limit any sharp decline. Atlantic VLCC routes also weakened, with lower rates from the US Gulf and Brazil reflecting reduced momentum and limited West Africa activity. Suezmax markets corrected significantly after last week’s surge, particularly in the Atlantic, where excess tonnage and weaker cargo demand pushed rates sharply lower. However, East of Suez remained comparatively strong as owners preferred regional employment over ballasting West. Mediterranean Aframax rates strengthened on firm early September demand and owner confidence, but next week could see a downturn. The North Sea market initially improved but later softened as local vessel availability increased and charterers became more cautious.
Product tanker markets were generally firm despite uneven activity. AG LR2s remained supported by exceptionally tight vessel supply, although a slowdown in fresh business limited further gains. LR1s followed a similar pattern, with tight tonnage and strong early-week rate increases offset by softer demand later in the week. AG MRs enjoyed sustained enquiry and tightening availability, helping maintain upward momentum and strong sentiment. Mediterranean MR and Handy markets were steadier, with activity improving but rates largely holding flat as tonnage remained sufficient. In Northwest Europe, MR activity increased markedly, helping absorb oversupply and keep rates stable, while Handy markets firmed further as vessel availability stayed tight and owner preference for regional employment supported earnings.