Tanker: Continued market gains this week
VLCC rates continued to experience gains, reaching a 5-year high last week. Suezmax rates also remain strong, followed by the product segment, which now also experience increased earnings. Crude markets are being shaped more by fears of oversupply and emerging signals of possible Ukraine peace discussions than by immediate risks to Russian output. Sanctions and elevated production have pushed seaborne crude volumes to a record 1.4 billion barrels, while new US measures on Lukoil and Rosneft prompted Indian and Chinese refiners to adjust their intake. This could pose a risk for the upcoming period, if too much crude is being stored on the seas. While a potential oversupply could pose a risk for the upcoming period, redirected Chinese and Indian crude purchases away from Russia is a positive.

LPG/VLGC: Limited cargo availability led to quieter week
Activity in the VLGC market was subdued across regions, with limited cargo availability keeping sentiment soft. The Middle East Gulf turned more bearish as only a few quotes and fixtures emerged from Indian Public Sector Undertakings, which shape regional LPG demand. In the United States Gulf, product prices improved for a short period, which usually helps create more trade opportunities. Even so, very few ships were booked, showing that there still are not enough cargoes in the market.

PCTC: Auto manufacturing investment surges
China’s auto sector continued to expand at a strong pace in October, with industrial value added and fixed asset investment both rising sharply as neighbourhood electric vehicle (NEV) output accelerated. Production reached 3.28 million units, including 1.71 million NEVs, supporting a surge in lithium battery manufacturing and continued strength in small and mid-range EV models. India also saw robust momentum, with passenger vehicle sales up 15.8 percent in October, driven by major automakers and boosted by GST cuts on small cars and festive season demand. New model launches and supportive economic conditions are expected to sustain growth.

Geopolitical: New US measures on Russia continue to reshape crude flows
New US measures on Lukoil and Rosneft are reshaping crude flows as Indian and Chinese refiners adjust to comply with the sanctions. Ukraine’s strike on a Rosneft refinery in Samara and the short suspension of operations at Novorossiysk added to the pressure, though loadings have since resumed. Washington has also cleared negotiations over a potential sale of Lukoil’s foreign assets, signalling a push to curtail Russia’s overseas reach. Demand for Russian barrels has weakened as key buyers scale back, leaving several grades priced well below global benchmarks and highlighting the geopolitical squeeze on Moscow’s energy position.