Crude tanker sentiment firmed after latest US sanctions on Russia

Crude tanker sentiment improved towards the end of the week ending 24 October 2025 after new US sanctions on Russia’s largest oil producers, Lukoil and Rosneft.

Clarksons said average crude tanker earnings closed on Friday at US$70,726 per day, noting “potential for upside in the near term” as reports suggested Indian and state-backed Chinese refiners might reduce purchases of Russian crude, with mainstream tanker demand likely to increase as a result.

Across sizes, very large crude carrier (VLCC) benchmark earnings eased earlier in the week but finished stronger on Friday in the Arabian Gulf as owners adopted a more bullish stance. Aframax markets in the North Sea and Mediterranean remained tight, with firming on cross-UK Continent and Med routes supported by logistical complications around the evolving sanctions environment.

Suezmax rates were softer overall but ended the week buoyant into the weekend.

Clarksons also quantified the expanding compliance backdrop: sanction-listed oil tankers reached 908 vessels totalling 107M dwt – equivalent to 16% of oil-tanker fleet capacity, including 19% of crude-tanker tonnage – adding to operational friction and regulatory scrutiny.

The broker further noted a build-up of ‘shadow-fleet’ tonnage off Alang, which weighed on recycling pricing.

LNG carrier spot rates strengthened. Competition for ships emerged in the Atlantic and sentiment firmed in the East; the average spot rate for a modern two-stroke 174,000-m³ vessel rose 28% week on week to US$30,750 per day, the highest level since late August.

In contrast, the very large gas carrier market weakened, with Ras Tanura–Chiba earnings down 21% week on week to US$37,671 per day after failed fixtures and a lengthy list pressured East of Suez levels.

At the cross-sector level, the ClarkSea Index fell 2% week on week to US$29,864 per day (still 28% above the 10-year average), while mid-October general rate increases lifted spot container indices and supported charter activity in the 2,500–4,200 TEU range.