Why Tanker Stocks Popped This Week
Tanker stocks rose sharply this week as oil prices rose and investors saw the need to move more oil around the world. Not only is solid economic data in the U.S. pushing energy markets higher, but China's rising demand could also help.
According to data provided by S&P Global Market Intelligence, shares of Scorpio Tankers (NYSE: STNG) jumped 14.6% between the close of trading last week and 1:00 p.m. ET on Friday, Frontline (NYSE: FRO) was up 9.7% in that time, and Teekay Tankers (NYSE: TNK) popped 10.9%. This is in stark contrast to a lot of growth and technology stocks dropping this week.
The potential for higher interest rates has been a big focus by investors this week, but the reason is the hot economy. The jobs report showed both a gain of 517,000 jobs last month and a drop in unemployment to 3.4%. That means the underlying economy is strong, and that's why oil prices were up this week.
Source Fool.com
