Production cuts rolled back, boosting the tanker market

OPEC+ caught the market by surprise this week, announcing a production increase of 411,000 barrels per day for May – much higher than the expected 135,000 bpd. The group is accelerating its plan to unwind earlier production cuts, responding to stronger demand and potential supply risks from countries under sanctions.

Busy and lucrative times ahead
This is a clear positive for the tanker market. Higher production means more oil moving across global trade routes, especially towards Asia, which supports tanker demand and tonne-miles. With the current tight supply of compliant vessels and limited new deliveries, this extra volume is well-timed and could help keep freight rates elevated.