Tanker volumes in the Red Sea drop further following fresh attacks.

Average crude tanker volumes in the Red Sea dropped again last week as new attacks on vessels drove volumes to around 60% below their pre-conflict levels. The resulting reduction in vessel supply contributes to positive owner sentiment.

Suezmax rates held steady last week after easing slightly the week prior. Vessel supply was further restricted as tanker volumes in the Red Sea fell reach new conflict lows last week; however, while sentiment was generally positive, longer tonnage lists and weak enquiry in the East put top-down pressure rates, leading to stable rates overall. The weakness in the East comes as China faces a struggling housing and stock market, a theme to watch in the coming weeks. Overall, Suezmax owners feel optimistic as supply tightness overcomes demand challenges.

“Rates generally stable as tight supply conditions offset somewhat softer demand.”

Aframax markets faced a general softening as relative stability in the Mediterranean/Black Sea was not shared by the UK Continent/Baltic market, which softened under weaker activity levels.

VLCC rates were stable as a series of off-market-fixing lifted owner sentiment. Activity was mostly kept off-market last week, despite rates bottoming, and, while the strength of future demand remains uncertain, owners are generally positive.