No signs of weakness in ‘old school’ tanker rally, says Frontline
- VLCCs loading in the Middle East are getting $130,000 per day; current bookings will be mostly accounted for in 1Q26 earnings
- Higher imports by India and China from the Middle East are improving price competitiveness of Americas oil vs Middle East grades, supporting more long-haul flows
- Frontline does not expect floating storage if oil contango develops, but does believe oil carry trade will support even more Americas-to-Asia voyages
Sanctions are having an increasingly positive effect on mainstream tanker rates. ‘The incremental barrel to the market is now compliant oil — and compliant oil needs compliant vessels,’ says Frontline’s Lars Barstad
