Output set to rise in April, boosting tanker demand OPEC+ has been limiting oil production since 2022 to stabilize prices, cutting output by 2.2 million barrels per day (bpd). The group has confirmed a 138,000 bpd production increase in April, its first step toward gradually unwinding these cuts. This decision follows pressure from President Trump to lower oil prices amid geopolitical uncertainty. The above relatively small increase corresponds to an additional demand of approximately 5 Suezmax tankers, highlighting the great

Market holds firm during week of global volatility The tanker market has remained steady this week, with earnings staying strong despite ongoing geopolitical uncertainty. Suezmax and scrubber-fitted VLCCs are currently trading at $40,000 per day, according to Fearnleys, reflecting sustained demand and limited fleet availability. Looking ahead, market fundamentals suggest rates could rise further. The Atlantic peak export season is approaching, and China’s crude inventories are low, increasing the likelihood that Chinese refiners will seek crude from non-sanctioned suppliers. Fearnleys

Car sales forecast to rise by 3% while US tariffs pose challenge The PCTC market has seen little movement in early 2025, aside from major listed companies reporting quarterly results in line with expectations. GlobalData forecasts global light vehicle sales to grow by over 3% year-on-year, reaching 91.6 million units in 2025. While potential US trade tariffs pose a risk to international trade and economic growth, lower interest rates, new car model launches, and competitive market dynamics are expected to

VLGC upside may have to wait until US export increase in Q3/4 This month, the VLGC market remained stable, hovering around $30,000 per day amid limited arbitrage opportunities. The soft market so far this year has been driven by reduced activity, but rates may rebound post-winter as arbitrage improves. Fearnley Securities sees upside potential in the second half of ’25, as US export capacity expands – potentially driving rates higher. Looking further ahead, 2026 is expected to be strong, with

Earnings thrive in volatile beginning to 2025 This month, the tanker market experienced significant volatility, driven by tariff announcements, new sanctions on tankers transporting Iranian and Russian crude, and broader geopolitical disruptions. These events have pushed crude tanker earnings – led by the VLCC segment – to more than $40,000 per day, up 50% since the start of the year. Uncertain times benefit tanker market – up to a pointWhile US tariffs and sanctions under President Trump create geopolitical uncertainty,

Government aims to convert 10% of coal power to ammonia by ‘27 China’s renewable ammonia co-firing strategy is set to drive significant demand for ammonia transport, benefiting the Very Large Ammonia Carrier (VLAC) market. As part of its 2024-2027 economic action plan, China aims to retrofit coal power plants to co-fire at least 10% ammonia by 2027, requiring an estimated 200 million tons per year of ammonia fuel. A potential game-changer for VLAC marketsTo support this transition, the Chinese government

Rates boost is expected as further vessels are blacklisted The US has blacklisted 13 more tankers, including five VLCCs, while the EU has added 65 tankers to its list, further restricting sanctioned crude exports. These sanctions on shadow fleet tankers are set to increase demand for mainstream vessels, according to Fearnley Securities. Pronounced decline for Iranian exportsWith over 10% of VLCCs and Suezmaxes now blacklisted, and nearly 20% of the Aframax/LR2 fleet affected, crude and product exports from Iran and

Product market strenghtens – VLGC and PCTC remain stable This week has been relatively calm for the tanker segment. Suezmax earnings softened slightly week-on-week, with modern scrubber-fitted Suezmaxes Spot still strong at $45,000 per day on average. The product tanker market has shown some strengthening, with average earnings in the mid-$20,000s per day. Meanwhile, activity in the VLGC and PCTC markets has been limited, with minimal rate movements from last week. However, exciting developments are coming up for the ammonia segment,

European Commission set for €422m clean fuel infrastructure investment The European Commission is directing €422 million toward 39 projects under the Alternative Fuels Infrastructure Facility with a strong focus toward expanding clean fuel infrastructure, including maritime applications. Key investments include onshore power supply in ports, hydrogen refuelling, and infrastructure for ammonia and methanol as next-generation marine fuels. Testament to the clean fuel sector’s long-term viability Commissioner Apostolos Tzitzikostas emphasized the role of these projects in accelerating decarbonization and supporting the

Modest 2025 expected as US export constraints remain Soft LPG markets may persist in 2025, in particular throughout the year’s first six months. An LPG carrier fleet growth of 3.6% (excl. VLECs) is expected to outpace the combined LPG and ammonia tonne-mile trade growth of 1.8% this year. The growth in demand is primarily limited by LPG export capacity constraints in the US – although these may begin to ease in the second half of 2025. Long-term expectations positive –