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The Rise and Fall Saga Continues for the Crude Oil Tanker Index

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Baltic Dirty Tanker Index

In week 49, which ended on Friday, December 9, 2016, the BDTI (Baltic Dirty Tanker Index) rose from 889 to 903. The index fell sharply by 21 points on Thursday, December 8, followed by a rise of 14 points on Friday. In the previous week, the index fell.

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 49, the index was lower than the level last year. On average, the index was 7.0% lower than the same period in 2015. Since the crude oil tanker business is seasonal, it’s important to look at its year-over-year performance.

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Stock performance

It was a great week for crude oil tanker investors. Below are the stock returns of crude oil tanker companies for the week ended December 9, 2016, compared to their prices the previous week:

  • Teekay Tankers (TNK): rose 17.0%
  • General Maritime Partners (GNRT): rose 17.0%
  • Tsakos Energy Navigation (TNP): rose 17.0%
  • Nordic American Tankers (NAT): rose 10.0%
  • Euronav (EURN): rose 10.0%
  • Frontline (FRO): rose 7.0%
  • Navios Maritime Midstream Partners (NAP): rose 2.0%

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA rose 6.0% in week 49. If you’re interested in a broad exposure to the industrials sector, you can invest in the SPDR Dow Jones Industrial Average ETF (DIA).

Series focus

We’ve already looked at tanker stock performances in week 49. In the rest of the series, we’ll see which tanker company performed better during the week. We’ll also look at the cost side of the tanker industry by reviewing bunker fuel costs. Finally, we’ll see what analysts are recommending for crude oil tanker companies.

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