VLCC tanker rates increased sharply this week to hit four-month highs driven by Asian refineries ordering long-haul barrels from the Atlantic, according to brokers.

Clarksons said VLCC eco rates jumped nearly 19% on Monday to $64,600 per day, with a number of fixtures reported from Brazil and the US Gulf to China.

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The sharp improvements for VLCCs came after the largest crude carriers rode the coattails of spiking aframax and suezmax markets last week.

Fixtures this week included $56,763 per day on subs for a Brazil to China voyage chartered by Petrobas on the scrubber-fitted, 319,450-dwt Maran Leo (built 2014), according to the Tankers International app.

“A negative Brent-Dubai price spread has likely seen Asian refineries order low-cost, long-haul Atlantic barrels, pushing tanker earnings upwards,” Clarksons said in a note.

It added that owners in the Middle East were holding back on offers for cargoes in the belief that rates would increase.

“Solid volumes in the Atlantic Basin coupled with higher activity in the Middle East is providing upwards momentum for the sector,” US investment bank Jefferies said.

More oil has been available for export since September from the US owing to refinery maintenance, which is now coming to an end.

That could now see more oil diverted to local refineries, limiting the recent rises in tanker markets, Fearnley Securities said.

The VLCC market this summer has been hit by the decision by leading Opec+ members Saudi Arabia and Russia to cut production since July. Saudi Arabia exports most of its oil on VLCCs.

But rising oil production in the Americas will drive export growth for crude carriers into next year, Clarksons said in its monthly oil and tanker trade report.

“Supportive demand trends are expected to remain in the crude sector in 2024,” it said.

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