Crude Tanker Index Falls for 2nd-Straight Week
Week 31 for tankers
When assessing the crude tanker industry, it’s important to track the BDTI (Baltic Dirty Tanker Index). This index gives us an idea about the direction that crude oil tanker rates are heading. In the 31st week of 2017 (ended August 4, 2017), the BDTI Index fell from 640 to 619. Since the beginning of the year, the index has fallen ~43.5%.
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Crude oil tanker rates are seasonal, and so we prefer to look at their YoY (year-over-year) performances. In the same period last year, the index was ~524. On average, the index was ~21% higher YoY.
All crude tanker stocks traded in the red last week. Below are the stock returns of crude tanker stocks for week ending August 4 (compared to their prices one week ago):
- Teekay Tankers (TNK) fell 3.3%.
- Nordic American Tankers (NAT) fell 5.4%.
- Tsakos Energy Navigation (TNP) fell 3.8%.
- Gener8 Maritime (GNRT) fell 8.3%.
- Frontline (FRO) fell 4.1%.
- Euronav (EURN) fell 2.4%.
Notably, the SPDR Dow Jones Industrial Average ETF (DIA) rose 1.4% during the same week.
In the next part of this three-part series, we’ll discuss how the second quarter fared for Teekay Tankers and the company’s views on the industry outlook. In this series, we’ll also see where VLCC, Suezmax, and Aframax are rated now.