A Week 6 Review of the Crude Tanker Industry



Baltic Dirty Tanker Index

In the week ended February 10, 2017, the BDTI (Baltic Dirty Tanker Index) fell from 858 to 847. The index fell on three out of five days in the week. The BDTI tracks shipping rates for crude oil (DBO) on representative routes. Researchers and analysts follow the index to assess companies’ revenue and earnings potentials.

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In week six, the index was higher than last year’s level. On average, the index was 7% higher than it was in 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

Expect for Teekay Tankers (TNK), all crude tanker stocks were trading in positive territory in week six. Below are the stock returns of crude tanker companies for the week ended February 10, 2017, compared to their prices from the previous week:

  • Teekay Tankers fell 2.8%.
  • General Maritime Partners (GNRT) rose 1.8%.
  • Tsakos Energy Navigation (TNP) rose 1.7%.
  • Nordic American Tankers (NAT) rose 1%.
  • Frontline (FRO) rose 3%.
  • Euronav (EURN) rose 3%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA had a return of 1.5% during week six. If you’re interested in broad exposure to the industrials sector, you can invest in the SPDR Dow Jones Industrial Average ETF (DIA).

Moving forward

In the next article, 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 and analysts’ changes to their crude tanker recommendations.


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