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Crude Tanker Index Is 41% Lower This Year

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Aug. 4 2017, Published 7:12 a.m. ET

Week 30

When assessing the crude tanker industry, it’s important to track the BDTI (Baltic Dirty Tanker Index). The index gives us an idea about the direction that crude oil tanker rates are heading. In week 30, which ended on July 28, 2017, the BDTI fell from 655 to 640—the index fell after a rise in the previous week. Since the beginning of the year, the index has fallen ~41%.

Crude oil tanker rates are seasonal. As a result, we look at their YoY (year-over-year) performances. In the same period last year, the index was ~567. On average, the index was 15.43% higher YoY.

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Stock performance

Crude tanker stocks gave mixed returns last week. Below are the stock returns of crude tanker stocks for week ending July 28—compared to their prices a week ago.

  • Teekay Tankers (TNK) rose 2.9%.
  • Nordic American Tankers (NAT) rose 0.83%.
  • Tsakos Energy Navigation (TNP) fell 0.2%.
  • Gener8 Maritime (GNRT) fell 3.5%.
  • Frontline (FRO) fell 1.3%.
  • Euronav (EURN) rose 2.5%.

The SPDR Dow Jones Industrial Average ETF (DIA) rose 1.1% during the same week.

Series overview

In the next part of this series, we’ll see how crude tanker—VLCC, Suezmax, and Aframax—rates performed in week 30. In this series, we’ll also take a look at how crude oil prices and bunker fuel prices fared in the previous week. Analysts have slashed the target prices for two crude tanker companies.

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