Previously in this series, we discussed that crude (DBO) tanker stocks were mixed in the week ending December 15, 2017. VLCC (very large crude carrier), Suezmax, and Aframax rates fell. In this part of the series, we’ll see how crude oil and bunker fuel prices fared in week 50.
At the beginning of the previous week, crude oil prices hit $65 per barrel, which one of the highest levels in the last two years. Prices rose due to the unplanned shutdown of the Forties crude oil pipeline for several weeks. Also, a fall in US crude inventories supported the prices. Brent crude oil prices rose to $63.3 per barrel on December 15, 2017, from $62.2 per barrel on December 8, 2017.
Bunker fuel prices
On December 14, 2017, the average bunker fuel price was $406 per ton—compared to $400 per ton on December 7, 2017. According to the Gibson report for week 50, bunker fuel prices at Rotterdam were $342 per ton on December 14, 2017—compared to $335 per ton the previous week. Bunker fuel prices at the Port of Fujairah fell to $369 per ton from $372 per ton the previous week, according to the same report.
Which companies were impacted?
Industries that transport commodities on ships incur bunker fuel costs. These industries are LNG (liquefied natural gas) carriers, product tankers, dry bulk carriers, and crude oil tankers. Bunker fuel prices are closely related to oil prices.
Some of the major crude oil tanker companies are Nordic American Tankers (NAT), Frontline (FRO), Gener8 Maritime Partners (GNRT), and Euronav (EURN). GasLog (GLOG) and Hoegh LNG Partners (HMLP) are LNG carrier companies. Navios Maritime Partners (NMM) is a major dry bulk shipper.
None of the analysts revised their recommendations and target prices for crude tanker companies in week 50 which ended on December 15, 2017.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.