Week 6: Crude Tanker Industry Update
When assessing the crude tanker industry, it’s important to look at the BDTI (Baltic Dirty Tanker Index). In week 5 of 2018, which ended on February 9, the BDTI fell from 658 to 642. In week 5, the index fell by 24 points. The index shows the direction that crude tanker rates are heading. The index has fallen ~22% since the beginning of the year.
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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 ~850. In week 6, the index was 23.6% lower year-over-year.
All crude tanker stocks fell in week 6. Week 6 is the second consecutive week that crude tanker stocks traded in the red. The following are the stock returns for the week ending February 9.
- Teekay Tankers (TNK) fell 8.3%.
- Nordic American Tankers (NAT) fell 6.2%.
- Tsakos Energy Navigation (TNP) fell 9.8%.
- Gener8 Maritime (GNRT) fell 6.8%.
- Frontline (FRO) fell 9.6%.
- Euronav (EURN) fell 6.1%.
- Navios Maritime Midstream Partners (NAP) fell 11.8%.
During the same period, the SPDR Dow Jones Industrial Average ETF (DIA) fell 5.1%.
In the next part of this series, we’ll see if crude tanker rates managed to rise in week 6 of 2018. We’ll see where bunker fuel prices are trading. Finally, we’ll see if analysts have revised any of their recommendations for crude tanker stocks.