Crude Tanker Stocks Rose during Election Week

The BDTI (Baltic Dirty Tanker Index) was at 740 on November 14, 2016. The BDTI tracks shipping rates for crude oil (DBO) on representative routes.

Sue Goodridge - Author

Nov. 16 2016, Published 10:28 a.m. ET


Baltic Dirty Tanker Index

The BDTI (Baltic Dirty Tanker Index) was 740 on November 14, 2016. In week 45, which ended on November 11, 2016, the BDTI rose from 665 to 750. The index rose sharply by 62 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 17% 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 45, the election week. Below are the stock returns of crude tanker companies for the week ending November 11, 2016, compared to their prices in the previous week:

  • Teekay Tankers (TNK) and General Maritime Partners (GNRT) rose 10% each.
  • Tsakos Energy Navigation (TNP) rose 12%.
  • Frontline (FRO) rose 8%.
  • Euronav (EURN), DHT Holdings (DHT), and Navios Maritime Midstream Partners (NAP) rose 1% each.
  • Nordic American Tankers (NAT) rose 17%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA gave a 0% return during week 45. 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 45. 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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