Oil Trade Disruption Drives $20 Billion VLCC Buying Spree as Tanker Demand Surges

September 19, 2026 Ambreen Anwar

Oil trade disruption around the Middle East has triggered a sharp increase in VLCC orders, with shipowners ordering more than twice as many Very Large Crude Carriers (VLCCs) in 2026 as in the whole of 2025. Disrupted Gulf routes, longer crude oil voyages and an ageing tanker fleet are driving demand for new vessels.

Data from Signal Group shows that 217 VLCCs have been ordered so far in 2026, compared with 93 in 2025. Allied Shipbroking recorded 164 orders, up from 83 last year, with the total value of the orders exceeding $20 billion. A VLCC can carry around two million barrels of oil.

Longer Voyages Reshape Global Oil Shipping

Disruption to the Strait of Hormuz has forced Asian and European refiners to seek alternative crude supplies, increasing the importance of Atlantic Basin oil and creating longer-haul shipping routes.

Around one-fifth of global oil and liquefied natural gas supplies passed through the Strait before the US-Iran conflict. US crude exports have reached record levels, while producers in South America, including Brazil, Guyana and Argentina, are expected to increase exports.

“Owners betting on increased long-haul shipments from the Atlantic to Asia are playing a large part in the renewed demand for VLCC ordering,” said Rebecca Galanopoulos, senior analyst at Veson Nautical.

Vortexa analyst Ioannis Papadimitriou expects regional production to grow by around 2.5 million barrels per day through 2030, largely supplying European and Asian markets and supporting longer-haul trades.

Gulf Disruption Keeps Tankers Occupied

Tanker demand is also being driven by the need to move oil out of the Gulf through the Strait of Hormuz before transferring cargoes onto larger vessels in the Gulf of Oman.

Middle Eastern producers are increasingly looking to own vessels themselves as shipowners remain reluctant to operate through the strait amid attacks.

Damage to a Saudi pipeline carrying oil west towards the Red Sea has added another disruption to regional flows.

“Saudi (Arabia) will need to participate in this business to a much greater degree … at least temporarily,” said Lars Barstad, CEO of Frontline.

VLCC spot rates have subsequently climbed above $500,000 per day, compared with around $132,000 in February before the conflict, according to Allied Shipbroking.

The additional shuttle voyages and ship-to-ship transfers also keep vessels occupied for longer periods, increasing the amount of tanker capacity required to move the same volumes of oil.

Ageing Fleet Adds to Newbuilding Demand

The ordering surge is also linked to the age of the existing VLCC fleet. Around 20% of VLCCs are more than 20 years old, according to Veson Nautical, after years of limited fleet renewal.

Each new VLCC costs around $130 million to build, according to Allied Shipbroking, with some recently ordered vessels scheduled for delivery in 2029 and 2030.

Pavlos Fakinos, freight market analyst at Allied Shipbroking, said the delivery dates indicate owners expect tanker demand to remain strong into the medium term.

Older VLCCs, meanwhile, continue to attract buyers rather than being scrapped. Some are entering the so-called shadow fleet, which is used to transport sanctioned oil from Russia, Iran and Venezuela outside mainstream Western shipping and insurance systems.

Brokers Pareto Securities estimate that buying a 10-year-old tanker is now more expensive than ordering a new vessel, highlighting the strength of the current tanker market.

Three Factors Behind the VLCC Ordering Surge

The current VLCC investment cycle is being driven by three clear factors: longer crude oil voyages, additional vessel requirements caused by Gulf disruptions and the need to replace ageing tankers.

The first two factors are increasing vessel utilization, while the ageing fleet is creating longer-term replacement demand. The delivery timetable extending into 2029 and 2030 also shows that shipowners are making investment decisions based on expectations for sustained tanker demand beyond the current market disruption.

The result is a stronger newbuilding market alongside elevated tanker earnings, with shipowners committing significant capital to additional crude oil transportation capacity.