The product tanker market is experiencing a notable upswing driven by changing trade conditions. European refiners, grappling with diesel inventory challenges due to the ban on Russian oil products, coupled with reduced production, have led to declining diesel stocks, hitting the lowest levels since October 2022. Winter demand for heating oil, especially in Germany, has further intensified the diesel market, resulting in increased imports. However, congestion at the Panama Canal has impacted global fleet distribution, causing logistical challenges and elevated MR tanker rates. The MR tanker segment sees a surge in market valuations for older vessels, possibly influenced by strategic deployment and evolving market dynamics. Ongoing disruptions in the Panama Canal, coupled with factors like limited orders and shipyard capacity constraints, suggest that MR tanker rates are poised to remain robust in the foreseeable future.

SOURCE:GOOGLE