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The U.S. oil boom is bad news for the business of hauling crude oil across the oceans, and isn't...

The U.S. oil boom is bad news for the business of hauling crude oil across the oceans, and isn't likely to pick up any time soon. It means a poor outlook at best for the stocks in the sector, Jefferies says, which projects Frontline (FRO) will lose $2.33/share this year in earnings and $2.09 next; North American Tankers (NAT) also is expected to lose money this year and next.
Comments (3)
  • FRO has been here before.

     

    Time to break up some ships...
    25 Apr 2013, 07:23 PM Reply Like
  • Jefferies is just figuring this out know? Brilliant. Volumes to China to Asia will continue to grow. Also, petroleum product exports from the U.S. are growing as well (the U.S. has been a net exporter of products for two years), this was highlighted at the Shipping conference in NYC a few weeks ago. Tankers that can carry products are already benefiting.
    26 Apr 2013, 08:22 AM Reply Like
  • I don't think you read the full article. Yes, the US exports petrolium products like gasoline, but FRO carries crude oil. A big difference. Also shipping distances for crude are a factor. Here is the URL for the full analysis
    http://on.wsj.com/15MxLJY
    26 Apr 2013, 12:16 PM Reply Like
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