VLCCs Record Breaking Pace: Where Does the Market Go From Here?
According to Gibson, Houthi attacks have forced rerouting of Yanbu crude, increasing VLCC supply in the East Med to close to 30 vessels, while attacks on vessels further erode available tonnage. China is reportedly considering releasing up to 20 million tonnes of crude from its SPR, which would limit import demand. High VLCC rates are diverting some demand to Suezmaxes, and the market appears to be pricing in disruption lasting at least until year-end.
Why it matters: The report illustrates how geopolitical disruption in the Middle East is reshaping VLCC supply and demand, a central theme for oil trade flows.