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How the Crude Tanker Industry Performed in Week 34

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Aug. 30 2016, Updated 12:19 p.m. ET

Baltic Dirty Tanker Index

The BDTI (Baltic Dirty Tanker Index) rose from 504 at the beginning of Week 34 to 515 on August 26, 2016. The index rose four days out of five in the week. This was the second consecutive week in which we saw a rise in the index.

BDTI tracks shipping rates for the transportation of crude oil (DBO) on representative routes. Researchers and analysts follow this index to assess companies’ revenues and earnings potentials.

In Week 33, the index was lower than last year’s level. On average, the index was 15% lower than in the same period last year. The crude tanker business is seasonal. It’s important to look at its year-over-year performance.

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Stock performance

Week 33 wasn’t a good week crude tanker investors, with all crude tanker stocks ending up in negative territory. Below are the stock returns of tanker companies for the week ended August 26, 2016, compared to the week before:

  • Nordic American Tankers (NAT) fell by 8%.
  • DHT Holdings (DHT) fell by 18%.
  • Teekay Tankers (TNK) fell by 7%.
  • Tsakos Energy Navigation (TNP) fell by 3%.
  • Frontline (FRO) fell by 1%.
  • General Maritime Partners (GNRT) fell by 7%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA rose by 2% during Week 32. If you’re interested in broad exposure to the industrials sector, you can invest in the SPDR Dow Jones Industrial Average ETF (DIA).

Series focus

We looked at tanker stock performances in Week 33. Next, we’ll see which tanker performed better that week. We’ll also look at the cost side of the tanker industry by reviewing bunker fuel costs. Finally, we’ll see how analysts’ sentiments changed in Week 33, and we’ll take a look consensus analysts’ ratings for all crude tanker companies.

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