Events in Ukraine and the state of the global economy will likely determine if the rally in the VLCC market can be sustained, says Poten & Partners.

The US shipbroker said a successful implementation of the European ban on Russia’s seaborne oil imports, in combination with the G7 oil price cap could boost ton-mile demand and further increase freight rates.

However, this positive momentum could be derailed by a global recession which will hurt oil demand over the next six to 12 months, it added.