Week 2: Crude Tanker Industry Update

Week 2

In week 2 of 2018, which ended on January 12, 2018, the BDTI rose significantly from 680 to 684. The BDTI gives us an idea about which direction crude tanker rates are heading. The index fell 17%—compared to the BDTI at the end of 2017.

Week 2: Crude Tanker Industry Update

Since the crude tanker industry is seasonal, it’s important to look at the BDTI’s yearly performance. The BDTI was at ~957 during the same period last year. In week 2, the index was 33% lower year-over-year.

Weekly performance

Crude tanker stocks had mixed returns in week 2. Euronav and Gener8 Maritime Partners traded in the red, while their peers traded in the green. The following are crude tanker companies’ stock returns for week 2 of 2018.

  • Teekay Tankers (TNK) rose 2.2%.
  • Nordic American Tankers (NAT) rose 1.9%.
  • Tsakos Energy Navigation (TNP) rose 1.8%.
  • Gener8 Maritime (GNRT) fell 4.2%.
  • Frontline (FRO) rose 0.4%.
  • Euronav (EURN) fell 3.8%.
  • Navios Maritime Midstream Partners (NAP) rose 0.72%.

In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) rose 2.1%.

Series overview

In the next part of this series, we’ll see if crude tanker rates managed to rise in the second week of 2018. In the series, we’ll see where bunker fuel prices are trading as oil prices near $70 per barrel. Next, we’ll see if analysts have revised any recommendations for crude tanker stocks.