The impact on the VLCC market following Saudi Arabia’s decision to abandon plans to increase production will be minimal in the near term and could bring a boost for VLCCs down the line.
When we look at our Tankers International fixture app data, it is clear that Middle Eastern producers, including Saudi Arabia, continue to provide a strong baseline for the VLCC segment. Despite OPEC+ production curbs through 2023, fixture counts in the Middle East Gulf remain at record levels. If we include the rising volumes of Iranian masked “Malaysian Blend” cargoes lifted in Singapore – averaging 10 liftings per month in 2023 – there is no change in Middle Eastern crude volumes lifted on VLCCs.
Source: Tankers International VLCC Database
