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 5^th, 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