The impact of a potential truce will vary across different tanker segments

This week, US president Donald Trump called for immediate Ukraine peace negotiations after a “highly productive” 90-minute call with Vladimir Putin. Ukraine’s president Zelenskyy also spoke with Trump, expressing hope for “lasting peace”. 

Scrapyard-bound Russian fleet may boost market after detente

While crude tanker markets may see limited direct impact, shifting trade flows could affect vessel demand. The largest crude tankers may benefit from a potential peace agreement, having lost market share in Asia, while smaller tankers could face pressure.

Currently, 25% of product tankers and 20% of crude tankers serving Russia are 20+ years old. If Russian oil starts flowing back to the West, a wave of scrappings is expected to follow, benefiting the mainstream market.