| | | Oil tanker stocks surge as market awaits potential Israel retaliation against Iran
Oct. 03, 2024 1:23 PM ET
By: Carl Surran, SA News Editor
 rgaydos/E+ via Getty Images
Frontline (NYSE: FRO) and other oil tanker stocks are rallying this week as Israel weighs potential retaliation for Iran's missile launch against it, and whether Israel's response will include any of Iran's key energy assets.
Tanker companies, wary of geopolitical risks in the Middle East, have limited the hire of their vessels, Bloomberg reported Thursday, citing three vessel owners.
Earnings for Aframax-class ships to deliver 700K-barrel cargoes of U.S. oil to Europe surged 249% this weak to reach nearly $58K/day, the Baltic Exchange reports, Bloomberg said.
The Exchange's overall assessment of Aframax earnings doubled this week to slightly more than $42K/day, Suezmaxes have gained 56% to $36K/day this week, and Very Large Crude Carriers have gained 10%.
Frontline (NYSE: FRO) has gained 8% in the three days since Iraq's missile attack to its highest level since mid-August; among other strong gainers include International Seaways ( INSW), DHT Holdings ( DHT), Nordic American Tankers ( NAT), Scorpio Tankers ( STNG), Teekay Corp. ( TK), Teekay Tankers ( TNK), Danaos ( DAC), Tsakos Energy Navigation ( TEN).
The increase in shipping rates is "consistent with the usual seasonal uptick heading into the winter, backed by a strong underlying market with limited supply growth and increasing geopolitical risks," Clarksons analysts wrote. |
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