Middle East disruptions drive very large crude carrier rates to multi-year highs, lifting Frontline’s cash flow outlook.
Frontline plc projected $1.5 billion in annual cash generation as very large crude carrier (VLCC) spot rates surged to $181,700 per day in Q2 2026. The company cited prolonged closure of the Strait of Hormuz as the key driver behind the rate spike.
VLCC rates last reached comparable levels in 2022 amid Russia-Ukraine war disruptions. Analysts had forecasted rates around $90,000 per day for the quarter, less than half the current print.
The company did not disclose immediate market reactions, focusing instead on operational resilience amid geopolitical tensions.