It’s important to look at the BDTI (Baltic Dirty Tanker Index) when assessing the crude oil tanker industry. In week 41, which ended on October 13, 2017, the BDTI rose to 903 from 776. In week 41, the index remained unchanged at 776. The BDTI shows the direction that crude oil tanker rates are heading. The index has fallen ~15% since the beginning of 2017.
The crude oil 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 ~636. In week 41, the index is 23.4% higher year-over-year.
In week 41, crude tanker stocks had mixed returns. The following are crude tanker companies’ stock returns in week 41:
- Teekay Tankers (TNK) rose 2.5%.
- Nordic American Tankers (NAT) rose 1.1%.
- Tsakos Energy Navigation (TNP) fell 0.22%.
- Gener8 Maritime (GNRT) rose 4.5%.
- Frontline (FRO) rose 4.5%.
- Euronav (EURN) rose 2.5%.
- Navios Maritime Midstream Partners (NAP) rose 11.4%.
In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) rose 0.52%.
In the next part of this series, we’ll see where crude tanker—VLCC, Suezmax, and Aframax—rates are heading. We’ll also discuss the cost side of the tanker industry—bunker fuel costs. In the last part of this series, we’ll see if any analysts revised their recommendations on crude tanker companies. We’ll also discuss the consensus recommendations for these companies.