Fri, Jan. 9, 12:25 PM
- Frontline (FRO +10.1%) has now jumped 63% this week amid speculation that a plunge in crude prices is spurring demand for the vessels to store cargoes.
- “The re-emergence of floating storage is what could move the crude tanker market this year from being rather good to possibly very very good," says a shipping analyst at Pareto Securities in Oslo.
- Traders may park as much as 60M barrels of oil on tankers in the coming months, according to consulting firm JBC Energy.
- Among other tanker companies: TK +1.2%, TNK +3.4%, TOO -0.3%, TGP -0.1%, TNP -0.7%, GLNG -1.9%, NAT -0.6%, DHT +3.1%.
- Earlier: Reuters: Oil glut sparks top traders to book supertankers for storage at sea
Thu, Jan. 8, 12:36 PM
- Some of the world's largest oil traders are hiring supertankers to store crude at sea, Reuters reports: Trading firms including Vitol and Trafigura, and energy major Shell (RDS.A, RDS.B) are said to have booked crude tankers for up to 12 months in the past week.
- Freight brokers and shipping sources consider the flurry of long-term bookings unusual and suggests that traders could use the vessels to store excess crude at sea until prices rebound, repeating a popular 2009 trading gambit when prices last crashed.
- Analysts at JBC Energy say floating storage, while a sign of an oversupplied market, may provide some temporary support for oil prices in the coming weeks.
- Related tanker companies: TK, TNK, TOO, TGP, TNP, FRO, GLNG, NAT, DHT.
Wed, Jan. 7, 9:43 AM
- Select shipping stocks are outperforming off of some fresh positive comments on the sector by analysts.
- Frontline (FRO +9.2%), following up on yesterday's brisk rally, is leading the charge.
- Gainers: DHT Holdings (DHT +6.1%), Teekay Tankers (TNK +1.7%), Nordic American Tankers (NAT +2.5%), Ship Finance International (SFL +0.9%).
Wed, Jan. 7, 9:20 AM
Tue, Jan. 6, 12:45 PM
Tue, Jan. 6, 9:20 AM
- Shares of Frontline (NYSE:FRO) sail in early trading.
- The stock was mentioned last night on CNBC Fast Money (video) as a leveraged play in the shipping sector.
- Karen Finerman thinks Frontline will make its next debt payment.
- Related: Shipping companies getting the nod from Global Hunter
- FRO +13.7% premarket.
Tue, Jan. 6, 9:07 AM
Dec. 24, 2014, 7:28 AM
Dec. 18, 2014, 9:14 AM| 9 Comments
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Dec. 15, 2014, 9:12 AM
Dec. 12, 2014, 12:46 PM
Dec. 12, 2014, 10:09 AM
- The number of supertankers sailing to China surges to record highs amid signs that crashing oil prices are leading the country to stockpile.
- Bloomberg reports 83 VLCCs are bound for Chinese ports, which would transport 166M barrels (assuming standard cargoes) for the largest amount since at least Oct. 2011; daily shipping rates on the tanker industry’s benchmark trade route from the Middle East to Asia jumped to $81.5K yesterday, the highest since Jan. 2010, according to Baltic Exchange data.
- Oil tanker operators are higher: FRO +24.5%, DHT +6.9%, TNK +2.5%, NAT +1.4%.
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