Oil/Shipping Tanker Stocks
The price of oil has little to do with the profitability of the tanker operators. Rather, boosting tanker fortunes is the interplay between the balance of worldwide demand for oil and for oil-shipping vessels supply. Driven in large part by increased consumption in China and reinforced by the U.S. economy, global oil demand continues to grow. In addition, there are the tensions in the Middle East. Bracing the upward pressure on charter fees created by demand growth, new rules requiring safer double-hulled vessels have caused a shortage in supply. Bears will argue the supply/demand scenario has tipped against the shippers. But long term, the trend is still working in their favor.
The stocks within this sector that pay big dividends include:
Frontline, Ltd. (NYSE: FRO)
Knightsbridge Tankers (NASDAQ: VLCCF)
Navios Maritime Partners L.P. (NYSE: NMM)
Nordic American Tanker Shipping Ltd. (NYSE: NAT)
Teekay Offshore Partners LP (NYSE: TOO)
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