Week 43: Crude Tanker Industry Update
It’s important to look at the BDTI (Baltic Dirty Tanker Index) when assessing the crude oil tanker industry. In week 43, which ended on October 27, 2017, the BDTI rose to 914 from 896. In week 42, the index dropped by seven points. The index shows the direction that crude oil tanker rates are heading. The index has fallen ~14% compared to the beginning of the year.
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The crude oil industry is seasonal. It’s important to look at the index’s yearly performance. During the same period last year, the BDTI was at ~671. In week 43, the index is 36.8% higher year-over-year.
In week 43, almost all of the crude tanker stocks traded in the red. Only Frontline traded in the green. It was the best performer among its peers in week 43. The worst performer among peers was Nordic American Tankers, which fell more than 7% in the week ending October 27, 2017. The following are crude tanker companies’ stock returns in week 43:
- Teekay Tankers (TNK) fell 6.4%.
- Nordic American Tankers (NAT) fell 7.6%.
- Tsakos Energy Navigation (TNP) fell 5.2%.
- Gener8 Maritime (GNRT) fell 4.7%.
- Frontline (FRO) rose 0.3%.
- Euronav (EURN) fell 3.0%.
- Navios Maritime Midstream Partners (NAP) fell 1.5%.
In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) rose 0.45%.
In the next part of the series, we’ll see how crude tanker rates fared in week 43. We’ll also see where crude prices and bunker fuel prices are headed in week 43. Evercore revised target prices for most of the crude tanker companies. In the last article of this series, we’ll take a look at these revisions along with consensus recommendations for crude tanker companies.