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Analyzing the Crude Tanker Industry in Week 46

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Baltic Dirty Tanker Index

The BDTI (Baltic Dirty Tanker Index) was 834 on November 21, 2016. In week 46, which ended on November 18, 2016, the BDTI rose from 750 to 828. The index rose sharply by 46 points on Wednesday and 45 points on Thursday.

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

In week 45 of 2016, the index was lower than the level last year. On average, the index was 10% lower than the same period last year. Since the crude tanker business is seasonal, it’s important to look at its year-over-year performance.

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Stock performance

All crude tanker stocks traded in positive territory in week 46. Below are the stock returns of crude tanker companies for the week ending November 18, 2016, compared to their prices in the previous week:

  • Teekay Tankers (TNK), DHT Holdings (DHT), and Euronav (EURN) rose 2% each.
  • Tsakos Energy Navigation (TNP) and Nordic American Tankers (NAT) rose 1% each.
  • Frontline (FRO) had a 0% return.
  • Navios Maritime Midstream Partners (NAP) rose 6%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA had a 2% return during week 46. 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 46. Next, we’ll see which tanker performed better during the week. We’ll also look at the cost side of the tanker industry by reviewing bunker fuel costs.

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