It’s important to look at the BDTI (Baltic Dirty Tanker Index) when assessing the crude oil tanker industry. In the 40th week of 2017, which ended on October 6, 2017, the BDTI fluctuated between 758 and 776. However, on the last day of the week, the index stood at 776, where it was at the start of the week. In week 39, the BDTI rose four points. The index shows the direction that crude oil tanker rates are heading. It has fallen ~16.0% since the beginning of 2017.
The crude oil tanker industry is characterized by seasonality. Along with its weekly performance, it’s also important to look at the index’s yearly performance. In the same period last year, the BDTI was at ~619.0. In week 40, it’s 24.7% higher year-over-year.
In week 40, crude oil tanker stocks had mixed returns. The following are crude oil tanker companies’ stock returns in week 40:
- Teekay Tankers (TNK): fell 0.63%
- Nordic American Tankers (NAT): fell 1.5%
- Tsakos Energy Navigation (TNP): rose 1.6%
- Gener8 Maritime (GNRT): rose 2.7%
- Frontline (FRO): fell 3.8%
- Euronav (EURN): fell 0.62%
- Navios Maritime Midstream Partners (NAP): rose 5.0%
In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) rose 1.7%.
In the next part of this series, we’ll see how VLCC (very large crude carrier), Suezmax, and Aframax rates performed in week 40. We’ll also see where crude oil prices and bunker fuel prices are headed. In the last part, we’ll look at analyst recommendations for crude oil tanker companies.