When assessing the crude tanker industry, it’s important to look at the BDTI (Baltic Dirty Tanker Index). In week 10 of 2018, which ended on March 9, the BDTI dropped to 653 from 669. In week 9, the index rose by 23 points. The index shows the direction that crude tanker rates are heading. The index has fallen ~21% since 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 ~848. In week 10, the index was 23% lower year-over-year.
Crude tanker stocks gave mixed returns in week 10. In week 9, all of the crude tanker stocks traded in the red. The following are the stock returns for the week ending March 9.
- Teekay Tankers (TNK) fell 2.5%.
- Nordic American Tankers (NAT) rose 2.3%.
- Tsakos Energy Navigation (TNP) rose 0.89%.
- Gener8 Maritime (GNRT) rose 0.51%.
- Frontline (FRO) fell 5.0%.
- Euronav (EURN) rose 2.4%.
- Navios Maritime Midstream Partners (NAP) fell 1.8%.
During the same period, the SPDR Dow Jones Industrial Average ETF (DIA) rose 3.4%.
In this series, we’ll see if crude tanker rates managed to rise in week 10. We’ll discuss where oil prices and bunker fuel prices are trading. Finally, we’ll see if analysts revised any of their recommendations for crude tanker stocks.