In week 49, which ended on December 8, 2017, the BDTI fell from 820 to 814. In the middle of the week, the index rose to 824 but fell towards the end of the week. In week 48, the index rose by eight points. The BDTI gives us an idea about which direction crude tanker rates are heading. The index has fallen ~24% 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. The BDTI was at ~879 during the same period last year. In week 49, the index was 6.9% lower year-over-year.
All crude tanker companies traded in the red last week. Frontline was the worst performer. The following are crude tanker companies’ stock returns for week 49.
- Teekay Tankers (TNK) fell 8.1%.
- Nordic American Tankers (NAT) fell 8.0%.
- Tsakos Energy Navigation (TNP) fell 7.5%.
- Gener8 Maritime (GNRT) fell 8.1%.
- Frontline (FRO) fell 9.1%.
- Euronav (EURN) fell 6.3%.
- Navios Maritime Midstream Partners (NAP) fell 3.4%.
In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) rose 0.48%.
In the next part of this series, we’ll discuss where crude tanker rates headed in week 49. We’ll also look at the cost side—bunker fuel prices. It’s the third consecutive week that Euronav has sold its vessels. In Part 5, we’ll see how analysts revised Frontline’s target price in week 49.