I want to recommned a great series of articles on the Tanker/ Shipping sector from The Market Realist www.market realist.com
here is a sample
The Dynamics of the Crude Tanker Industry
By Katie Dale • Apr 1, 2015 2:38 pm EDT
Oil prices impact crude industry
A February rebound in oil prices couldn’t hold on, and prices resumed their downward trend amid concerns over rising commercial crude stocks in the United States. Since late 2014, stocks have been increasing despite a falling number of oil rigs drilling in the United States.
Brent crude is trading at $55.11 as of March 24, 2014, down 7.3% from the previous month’s levels. Industry analysts believe that with falling oil prices, a crude tanker boom, albeit a short-lived one, surely exists.
The performance of oil tanker operators such as Nordic American Tanker (NAT), Capital Products Partners L.P. (CPLP), Tsakos Energy Navigation Ltd. (TNP), Frontline Ltd. (FRO), and Teekay Tankers Ltd. (TNK) have a direct correlation with the crude tanker industry. The PowerShares DB Oil Fund (DBO) is an industry ETF that tracks the performance of crude oil.
Dynamics of the crude tanker industry
In the current shipping industry, the tanker market is on the greener side compared to the dry bulk market recovery. Teekay Tankers commented in its 4Q14 quarterly update, “The outlook for crude tanker fleet utilization and spot tanker rates is expected to remain positive in 2015 based on a shrinking mid-size crude tanker fleet and a continued increase in long-haul tanker demand as more crude oil moves from the Atlantic to Pacific basins. The impact of low prices and the development of floating storage in the first quarter of 2015 are also expected to support positive tanker demand in the first half of 2015.”
What’s in this series?
In this series, we’ll look at the factors that drive the crude tanker industry and affect the performance of tanker companies. Before we begin the important indicators, we’ll look at the Baltic Dirty Tanker Index. Among indicators, we’ll take a look at China’s crude imports and auto sales, Canadian crude exports to the United States, and others.
CPLP $9.90 $0.02 0.20%
DBO $14.00 $0.01 0.07%
FRO $2.84 $0.21 7.99%
NAT $12.60 $0.10 0.80%
TNP $8.97 $0.06 0.67%
Crude Tanker Indicators Amid Fluctuating Oil Prices (Part 2 of 10)
Baltic Dirty Tanker Index on the Decline
By Katie Dale • Apr 1, 2015 2:39 pm EDT
Baltic Dirty Tanker Index
The Baltic Dirty Tanker Index is followed by analysts and money managers in order to assess the revenue and earnings potential of the crude oil shipping industry. How the Baltic Dirty Tanker Index performs, especially its year-over-year growth, is one factor that has significant implications for companies such as DHT Holdings Inc. (DHT), Frontline Ltd. (FRO), Teekay Tankers Ltd. (TNK), and Nordic American Tanker Ltd. (NAT). The PowerShares DB Oil Fund (DBO) is an industry ETF that tracks the performance of crude oil.
Baltic dirty index
On a year-to-date basis, the Baltic Dirty Tanker Index declined 13.1% to 769 on March 20, 2015. On a year-over-year basis, the index recorded an 8.2% increase.