January 15, 2023
The continued redrawing of trade routes and rising oil demand as China opens its borders are set to support mid-size tanker rates in 2023.
Tanker rates have softened over the past month, particularly in the VLCC segment due to reduced OPEC output. However, mid-size tanker spot rates remain relatively firm, with Russian crude oil exports largely flowing as normal following the introduction of the EU import ban and G7 price cap on Dec 5th, 2022.
Looking ahead, the opening up of China’s borders could generate a significant amount of oil and tanker demand during 2023. This should be positive for tanker rates, though some near-term headwinds could create volatility during the first half of the year.
Watch Christian Waldegrave‘s monthly tanker market update for more.
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