Freight
Market Overview
For third month running we retain a bullish view on VLCC be they in the Middle East (TD3c) or USGC (TD22).
Of course rates are supported by ongoing geopolitical risk, but also genuine vessel supply tightness. Saudi crude disruptions are prompting Asian buyers to source crude from further afield, increasing the global inefficiency of seaborne oil trade.
Barring any conflict resolution, the normal mechanism for VLCC rates to fall is when crude refiners trim crude purchasing. For that to happen, refinery weaker margins have a long way to go down… or freight still has room to climb higher.
