The tanker market strengthened throughout April, supported by a tightening supply of compliant vessels, renewed sanctions, and increased global oil production.

The shrinking pool of compliant tankers – those able to trade freely without sanctions risk – became increasingly visible in earnings. Despite the traditionally softer spring demand, spot rates for Suezmax and Aframax vessels rose by 20–30% compared to the second half of 2024. This reflected both reduced availability and steady cargo activity.

Aframax rates boosted by Canadian crude export
Canadian crude exports were notably redirected towards Europe following the introduction of new US tariffs, significantly boosting Aframax demand. More than 75% of these eastbound cargoes were handled by Aframax tonnage, driving spot earnings sharply higher, with North Sea Aframax rates climbing nearly 24% in just one week to almost USD 55,000 per day. A tight tonnage list in the Mediterranean and Northwestern Europe further supported the segment.

OPEC+ production jump sets tanker market on end
Meanwhile, OPEC+ unexpectedly announced a production increase of 411,000 barrels per day starting in May, far exceeding initial market expectations. This, combined with the reopening of Kazakhstan’s Black Sea oil terminal, added more volumes to the global seaborne crude market, providing additional employment for tankers.

By the end of the month, modern scrubber-fitted Suezmaxes were earning around $65,000 per day, the highest levels so far this year, while Aframax rates averaged in the low USD 50,000s. Renewed US sanctions on Iranian crude exports also tightened vessel availability, further supporting market conditions.