Fuel and Freight Daily Update - 8/26/25

08/26/2025

All prices reflect end-of-day settlements from August 25th, 2025

Crack Spreads

Colonial Pipeline Differentials (USGC):

• ULSD 62g (C50): -7.30

• Jet Fuel 54g (C50): -23.00

Clean Tankers – The U.S. Gulf continues to see oversupply in clean tanker availability. While flows into Latin America and the East Coast remain steady, they aren’t enough to fully offset the long tonnage list. Owners are still building in risk premiums tied to geopolitical uncertainty and possible delays, which is cushioning rates from a sharper downturn. Overall sentiment remains soft, but stable for now.

Crude Tankers – VLCCs remain committed to Cape of Good Hope routing, avoiding Hormuz and the Red Sea. These longer voyages are still soaking up global capacity, helping to keep Middle East–Asia rates firm despite otherwise muted global demand signals. Market consensus continues to treat the Cape as the “default route,” and that structural inefficiency is propping up long-haul pricing.

LNG Shipping – LNG freight rates remain well supported as Atlantic demand continues to underpin activity. Risk-averse routing, seasonal weather concerns, and limited vessel availability are stretching voyage times and leaving the market tight. Pricing remains firm, with little spare capacity available to absorb unexpected demand.

Routing & Geopolitics – No major shifts today. Tankers across clean, crude, and LNG markets continue to reroute around high-risk regions. These extended voyage lengths keep tonnage tied up, sustaining a structural floor under freight rates even in softer demand conditions.

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