A Bermudian-based independent crude oil tanker company has warned of higher prices in 2025 due to geopolitical instability – but said the company’s overall outlook for the year is positive.

DHT Holdings Inc operates 24 vessels in the very large crude carrier category.

The news of higher prices came as the company announced results for the 2024 fiscal year and fourth quarter.

A DHT spokesman said: “The start of the year suggests the coming year to be filled with geopolitical volatility, including announcements of tariffs that could disrupt trade and result in inflation.

“We, however, expect changes in trade flows to be constructive with the VLCC sector looking to be an asset class in high demand.

“This development comes at a time when the dynamics of our market increasingly are becoming a robust supply story, with a benign order book of new ships, a rapidly ageing fleet and a string of sanctions making it increasingly challenging to trade ships in the ‘shadow fleet’.

“The freight volatility so far this year demonstrates how the market balance is shifting in the favour of the ship-owning community. These dynamics are increasingly being recognised by our customers evidenced by strong demand for our quality fleet and services.”

The spokesman said: “China has stated its fiscal policy to be ‘moderately loose’, a status we understand to not having been applied since the 2008-2010 period in response to the then financial crises. This should hence be viewed as a significant policy stance to induce much needed economic activity, likely resulting in increased oil consumption.”

He added: “Further, we are registering both economic sanctions and fiscal issues impacting operations of ‘tea pot’ refineries, likely gradually shifting refinery runs to state-owned refineries thus changing imports to non-sanctioned crude oil with the use of compliant ships from companies such as DHT.

“Refinery margins in Asia are strengthening including indications of increased demand for diesel which suggest improved economic activity.

“We are well-positioned with what we believe is an appropriate strategy with focus on solid customer relations offering safe and reliable services, maintaining a competitive cost structure with robust break-even levels, a solid balance sheet, and a clear capital allocation policy.

“The whole DHT team continues to work hard and operate with leading governance standards and a high level of integrity.”

Thus far in the first quarter, DHT said 74 per cent of the available VLCC spot days have been booked at an average rate of $36,400 per day on a discharge-to-discharge basis.

The company said 81 per cent of the available VLCC days, combined spot and time charter days, have been booked at an average rate of $38,300 per day.