The release aims to ease fuel shortages, with future restocking potentially creating fresh demand for tanker shipments. On 2 October, the G7 announced plans to release 100 million barrels of crude oil and diesel from emergency reserves over four months, with substantial diesel supplies made available in the first 20 days. The aim is to ease shortages and bring down fuel prices. Members also pledged to avoid energy export restrictions, reducing the risk of a US diesel export ban. For

More crude is reaching buyers, but shuttle voyages, offshore transfers and cargo splitting keep vessel capacity under pressure. Exports have recovered, but shipping remains constrained Gulf crude and product exports, excluding Iran, reached approximately 16.5 million barrels/day in September, matching pre-war levels and recovering from around 6 million in March, according to Kpler. However, the recovery includes bypass routes, with flows through Hormuz itself still below normal. Tanker earnings remain exceptional. In the week ending 2 October, VLCC earnings averaged

Limited vessel availability lifts tanker and VLGC earnings, while Chinese vehicle exports support car carrier demand. Tankers: Suezmax earnings jump 72% as charterers turn to smaller ships Suezmax earnings rose 72% last week to approximately USD 628,000/day, while Aframax earnings increased 8% to around USD 272,000/day. Charterers continue to split larger crude cargoes onto smaller vessels, tightening availability across both segments. Strong demand in the Atlantic helped push Suezmax rates to new records, with little sign of immediate relief for

Record tanker rates are emerging despite falling oil trade, suggesting that today’s market is being driven by disrupted supply chains rather than demand growth. Today’s strength is coming from inefficiency, not rising oil demand It is tempting to compare today’s tanker market with the last major supercycle in 2007-08, particularly as spot rates move to levels not seen in years. But the forces behind the two markets are very different. BRS Shipbrokers points out that the previous boom was largely

Disruption to Saudi Arabia’s East-West pipeline is redirecting more crude through the Gulf and forcing European refiners to look further afield, increasing demand for Suezmax and Aframax tankers. Saudi Arabia loses a key alternative to the Strait of Hormuz The geography of Saudi crude exports has shifted again. On 10 September, drone attacks launched from Iraq shut the East-West pipeline, Saudi Arabia’s main route for moving crude from the Gulf to the Red Sea without passing through the Strait of

Ship-to-ship transfers outside Hormuz and tighter Panama Canal capacity continue to absorb vessels and support charter rates. Tankers: VLCC earnings exceed $1 million per day, pulling Suezmax and Aframax rates higher Tanker markets strengthened again last week, with benchmark VLCC earnings from the Middle East Gulf to China rising above $1 million per day. A key reason is the increasingly complex way crude is moving out of the Gulf. Producers are using VLCCs to carry oil through the Strait of

Lower traffic through the Strait of Hormuz is reducing fleet efficiency, while crude flows continue through alternative arrangements. Hormuz traffic remains heavily disrupted Tracked vessel transits through the Strait of Hormuz fell to seven on 9 September, around half the recent 10-day average and significantly below pre-conflict levels. The lower traffic reflects continued security risks and has made some shipowners more cautious about using the Strait. Crude continues to move, but with additional tonnage requirements Despite lower visible traffic, an