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5- and 10-year VLCC and Suezmax weekly prices on the run-up

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Nov. 21 2019, Updated 1:28 p.m. ET

Newbuild and secondhand vessel prices

Weekly price changes of secondhand vessels have a significant impact on the crude tanker industry. Weekly vessel values have been on the rise, with positive week-over-week and significant year-over-year growth. Secondhand vessel prices tend to be more responsive to changes in current rates.

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Secondhand vessel values

For the week ending January 2, 2015, 5- and 10-year-old VLCC prices stood at $63.35 million. This compares to $57.43 million in the previous week and $57.89 million during the same week a month ago. Notably, the VLCC 10-year-old vessel value touched its 52-week high of $50.31 million in the week ending January 2, 2015. Plus, the VLCC 5- and 10-year-old, four-week average stood at $58.94 million, compared to $50.27 million in the same period a year ago.

For the week ending January 2, 2015, 5-year and 10-year-old Suezmax prices stood at $48.63 million, compared to $44.61 million in previous week and $46 million in the same week a month ago. Notably, the Suezmax 5- and 10-year-old vessel value peaked to its 52-week high of $59.04 million and $38.21 million, respectively, in the week ending January 2, 2015. The four-week average stood at $45.73 million, compared to $33.49 million in the same period a year ago.

Vessel price appreciation

Tanker stocks such as Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), Nordic American Tanker (NAT), and Frontline Ltd. (FRO) should continue to benefit from the year-over-year growth of weekly vessel values. Also, the Guggenheim Shipping ETF (SEA) is likely to see a positive impact.

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