June 27, 2022
Changing trade patterns continue to support mid-size tanker rates while product tanker rates surge on high demand.
Looking at spot tanker rates over the past month, we have seen a very unusual situation emerge in that the market has essentially been “inverted” with product tanker rates averaging higher than crude. Within the crude tankers, Aframaxes have been the best performer, followed by Suezmax, with VLCCs being the worst of all.
Looking ahead, we expect VLCC rates will recover as China exits COVID lockdowns, while mid-size tanker rates should continue to benefit from trade route disruption as a result of Russia’s invasion of Ukraine. Although there are some headwinds on the horizon in the form of a slowing global economy, we expect that longer voyage distances and low fleet growth will continue to support spot tanker rates in the months ahead.
Watch Christian Waldegrave‘s monthly tanker market update for more.
For more information about the Teekay Tanker Commercial services, check out: http://tankerservices.teekay.com/
Forward Looking Statements
This content contains forward-looking statements which reflect the Company’s current views with respect to certain future events and performance, including statements regarding: tanker market fundamentals, including the balance of supply and demand in the tanker market, and spot tanker charter rates. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in spot market tanker rates; changes in the production of or demand for oil; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of tanker newbuilding orders or greater or less than expected level of tanker scrapping; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates and other factors discussed in Teekay Tankers’ filings from time to time with the United States Securities and Exchange Commission, including its most recent Annual Report on Form 20-F and subsequent Reports on Form 6-K for the quarterly periods ended thereafter. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.