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The Baltic Dirty Tanker Index impacts the shipping industry

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Baltic Dirty Tanker Index

In order to determine the crude oil shipping industry’s revenues and earnings, analysts and money managers follow the Baltic Dirty Tanker Index. Its year-over-year (or YoY) growth numbers have a significant impact on companies like Tsakos Energy Navigation Ltd. (TNP), Frontline Ltd. (FRO), Teekay Tankers Ltd. (TNK), Nordic American Tanker Ltd. (NAT), and the Guggenheim Shipping ETF (SEA).

BDTI

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November’s statistics

In the past two weeks—starting November 10—the Baltic Dirty Tanker Index widened to $947 on November 25. It was 839 on November 10. It recorded a 12.9% increase. On a YoY basis, the index recorded a 45% increase from 653 on November 26, 2013. Oil and gas storage and transportation make up 36.8% of SEA’s holdings.

Outlook

The tanker market’s demand fundamentals are in the positive. As a result, the Baltic Dirty Tanker Index will likely continue its upward movement. The trend is also being driven by the increased demand to ship higher Chinese volumes.

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