Overview
- Benchmark VLCC charters neared $137,000 a day late last week, up roughly 576% since January and the highest since 2020.
- Buyers contracted about a dozen VLCCs for late‑November and December loadings from the Middle East as traders replaced Russian barrels.
- Major refiners in China and India curtailed Russian intake and turned to the Middle East and the U.S. Gulf Coast for long‑haul cargoes.
- Tight VLCC supply pulled Suezmax and Aframax vessels into longer routes, with some Middle East‑to‑Asia Aframax trips fetching around $51,000 a day.
- Oil on the water swelled to about 1.2 billion barrels in October and Asian floating storage rose to roughly 53 million barrels, while product tankers switched to crude service and an upswing in OPEC+ and U.S. exports added pressure.