It’s important to look at the BDTI (Baltic Dirty Tanker Index) when assessing the crude tanker industry. In week 45, which ended on November 10, 2017, the BDTI fell to 803 from 843. In week 44, it fell by 71 points. The index shows the direction that crude tanker rates are heading. The index has fallen ~25% compared to the beginning of the year.
Since the crude oil industry is seasonal, it’s important to look at the BDTI’s yearly performance. During the same period last year, the BDTI was at ~683. In week 45, the index is 16.1% higher year-over-year.
Crude tanker stocks had a mixed week. Out of the seven crude tanker stocks that we observed, five stocks traded in the red and four stocks traded in the green. The worst performer in the group was Navios Maritime Midstream Partners (NAP), which fell 13%. The following are crude tanker companies’ stock returns in week 45:
- Teekay Tankers (TNK) fell 2.7%.
- Nordic American Tankers (NAT) rose 0.48%.
- Tsakos Energy Navigation (TNP) fell 0.22%.
- Gener8 Maritime (GNRT) rose 0.42%.
- Frontline (FRO) fell 5.4%.
- Euronav (EURN) rose 2.4%.
- Navios Maritime Midstream Partners (NAP) fell 13.1%.
In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) fell 0.32%.
In the next part of this series, we’ll see where crude tanker—VLCC, Suezmax, and Arframax—rates headed in week 45. We’ll look how crude oil prices and bunker fuel prices performed in the previous week. Analysts have revised the target prices for Nordic American Tankers and Teekay Tankers. In the last part, we’ll discuss analysts’ consensus recommendations for crude tanker companies.