Why Oil Tanker Stocks Jumped Today
Shares of tanker stocks jumped across the board early Tuesday as investors speculated that tanker rates would rise as short-term oil prices went negative. The most notable moves were by Nordic American Tankers (NYSE: NAT), Tsakos Energy Navigation (NYSE: TNP), Scorpio Tankers (NYSE: STNG), and both Teekay Tankers (NYSE: TNK) and Teekay Corporation (NYSE: TK). But by 2:40 p.m. EDT today, shares had settled to more modest gains.
Data source: Google Finance.
Today's positive move for oil tanker stocks came as oil prices started the day trading as low as negative $40 per barrel, the second day in a row that prices were negative. It's the last day of trading for the May 2020 contract for oil, so traders who didn't want to take delivery of oil were panic selling into negative territory.
Source Fool.com
