Tanker rates have firmed across the board in recent months due to longer voyage distances following Russia’s invasion of Ukraine coupled with positive underlying tanker supply and demand fundamentals.

Looking ahead, we are confident that the tanker market will remain very firm over the next six months due to the upcoming EU ban on Russian seaborne oil imports and elevated demand over the winter due to gas-to-oil switching. While there are concerns about the trajectory of the global economy in 2023, and how this may impact oil demand, we believe that longer voyage distances and very low fleet growth will function as offsetting factors and that the tanker market is well positioned to enjoy an extended period of strength over the next 2-3 years.

Watch Christian Waldegrave‘s monthly tanker market update for more.