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Week 9: Crude Tanker Industry Update

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Week 9

When assessing the crude tanker industry, it’s important to look at the BDTI (Baltic Dirty Tanker Index). In week 9 of 2018, which ended on March 2, the BDTI rose from 646 to 669. In week 8, the index fell by three points. The index shows the direction that crude tanker rates are heading. The index has fallen ~19% 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 ~841. In week 9, the index was 21.2% lower year-over-year.

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Weekly performance

Most of the crude tanker stocks fell in week 9. In week 8, all of the crude tanker stocks traded in the green. The following are the stock returns for the week ending March 2.

  • Teekay Tankers (TNK) fell 4.8%.
  • Nordic American Tankers (NAT) fell 4%.
  • Tsakos Energy Navigation (TNP) fell 1.5%.
  • Gener8 Maritime (GNRT) fell 1.2%.
  • Frontline (FRO) fell 6.3%.
  • Euronav (EURN) fell 1.8%.
  • Navios Maritime Midstream Partners (NAP) rose 2.9%.

During the same period, the SPDR Dow Jones Industrial Average ETF (DIA) fell 3%.

Series overview

Next, we’ll see if crude tanker rates managed to rise in week 9. We’ll discuss where bunker fuel prices are trading. Finally, we’ll see if analysts revised any of their recommendations for crude tanker stocks.

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