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Week 47: Overview of the Crude Tanker Industry

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Nov. 29 2016, Published 11:19 a.m. ET

Baltic Dirty Tanker Index

In week 47, which ended on November 25, 2016, the BDTI (Baltic Dirty Tanker Index) rose from 828 to 892. The index rose sharply by 28 points on Tuesday and 16 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 47, the index was lower than the level last year. On average, the index was 2.5% 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

It was a mix bag for crude tanker stocks in week 47. Below are the stock returns of crude tanker companies for the week ending November 25, 2016, compared to their prices in the previous week:

  • General Maritime Partners (GNRT) and Tsakos Energy Navigation (TNP) fell 2% each.
  • Nordic American Tankers (NAT) gave a 0% return.
  • Teekay Tankers (TNK) rose 1%.
  • Frontline (FRO) fell 1%.
  • DHT Holdings (DHT) and Euronav (EURN) rose 2% each.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA had a 1% return during week 47. 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 47. 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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