Tanker Rates Surge to Five-Year High as Sanctions Reorder Russian Oil Flows

Sanctions on Rosneft, Lukoil have shifted Asian purchasing patterns, driving longer routes that prompt fresh discounts on Urals.

Overview

Benchmark VLCC earnings climbed to nearly $137,000 per day late last week, the strongest level since 2020, as buyers sourced more crude from the Middle East and the United States.
Increased Middle East-to-Asia bookings lifted demand across the fleet, with Suezmax and Aframax vessels securing higher returns, according to freight analysts and brokers.
Russia offered December-loading Urals to Indian refiners at about $7 per barrel below Brent, marking the steepest discount in two years to sustain interest.
Most Indian refiners initially paused Russian purchases after the U.S. measures, though some are now considering cargoes from non-sanctioned sellers given the deeper price cuts.
Oil prices eased on November 25 as forecasts, including a Deutsche Bank estimate of at least a 2 million barrels-per-day crude surplus in 2026, weighed on the market despite trade disruptions.