Week 47: Crude Tanker Industry Update
It’s important to look at the BDTI (Baltic Dirty Tanker Index) when assessing the crude tanker industry. In Week 47, which ended on November 24, 2017, the BDTI rose from 809 to 812. In the middle of the week, the index rose to 827. In week 46, it rose six points. The index gives us an idea in which direction crude tanker rates are heading. The index has fallen ~24% compared to the beginning of the year.
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Since the crude oil industry is seasonal, it’s important to look at the BDTI’s yearly performance. The BDTI was at ~885 during the same period last year. In week 47, the index is 5.3% lower year-over-year.
Crude oil tanker stocks were mixed last week. Of the seven crude oil tanker stocks that we observed, five stocks traded in the green, and two stocks traded in the red. The worst performer in the group was Frontline (FRO), which released its third-quarter results last week. The following are crude oil tanker companies’ stock returns for Week 47:
- Teekay Tankers (TNK): rose 11.8%
- Nordic American Tankers (NAT): fell 1.2%
- Tsakos Energy Navigation (TNP): rose 0.4%
- Gener8 Maritime (GNRT): rose 0.8%
- Frontline (FRO): fell 3.7%
- Euronav (EURN): rose 5.3%
- Navios Maritime Midstream Partners (NAP): rose 4.2%
In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) fell 0.79%.
In the next part, we’ll assess how Thanksgiving impacted the crude oil tanker rates, including VLCC (very large crude carriers), Aframax, and Suezmax. In this series, we’ll see where bunker fuel prices are headed followed by some key updates of tanker companies that took place in Week 47.