It’s important to look at the BDTI (Baltic Dirty Tanker Index) when assessing the crude oil tanker industry. In week 44, which ended on November 3, 2017, the BDTI fell from 914 to 843. In week 43, it rose by 18 points. The index shows the direction that crude oil tanker rates are heading. The index has fallen ~21% compared to the beginning of the year.
The crude oil industry is seasonal. It’s important to look at the index’s yearly performance. During the same period last year, the BDTI was at ~662. In week 44, the index is 31% higher year-over-year.
In week 44, many of the crude tanker stocks traded in the red. Only Frontline and Navios Maritime Midstream Partners traded in the green. Navios Maritime Midstream Partners was the best performer among its peers in week 44. The worst performer was Nordic American Tankers, which fell more than 8% in the week ending November 3, 2017. The following are crude tanker companies’ stock returns in week 44:
- Teekay Tankers (TNK) fell 6.8%.
- Nordic American Tankers (NAT) fell 8.4%.
- Tsakos Energy Navigation (TNP) fell 0.8%.
- Gener8 Maritime (GNRT) rose 0.8%.
- Frontline (FRO) rose 3%.
- Euronav (EURN) returned 0%.
- Navios Maritime Midstream Partners (NAP) rose 3.7%.
In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) rose 0.43%.
In the next part of the series, we’ll see where crude tanker—VLCC, Suezmax, and Aframax—rates headed in week 44.We’ll also discuss how crude oil prices and bunker fuel prices performed. Wells Fargo revised the target prices for a few crude tanker companies in week 44.