New York-listed tanker stocks logged solid gains across the board in the first hour of trading today as investors reacted to suspected attacks on two tankers in the Gulf of Oman.
Frontline Ltd repeated earlier gains in European trading, jumping nearly 12% to $8.08. It owns one of the tankers damaged earlier.
Herbjorn Hansson's suezmax pure play Nordic American Tankers followed with a rise of nearly 9% to $2.22.
VLCC owner DHT Holdings gained 6.5% to $5.58, while peer Euronav gained 3.8% to $8.54. Teekay Tankers gained 2.8% to $1.10.
Another owner with VLCCs, International Seaways, was up just fractionally to $17.25.
Other gainers included Connecticut-based Diamond S Shipping, up 1% to $11. Tsakos Energy Navigation was trading flat at $3.15.
In the clean products sector, giant Scorpio Tankers strengthened more than 3% to $24.40, while Ardmore Shipping of Ireland rose 2% to $6.29.
Investors appeared to anticipate a possible rise in rates as buyers scramble for cargoes.
"With the difficulty in transporting Mid-East crude and refined products and a shift to US-based petroleum products, transport distances will increase and fleet operator will be seeing a step-up in ton miles," wrote equity analyst Liam Burke of B Riley FBR.
"Political unrest makes charterers secure tonnage now to avoid the risk of not being able to get their freight should tensions escalate. Because of the need to insure vessel availability, rates will be bid up by charterers."
Frontline should benefit along with Diamond S, International Seaways, NAT and Scorpio Tankers, he said.
The broader Dow Jones Industrial Average ticked up 0.25% to just above 26,000.
Oil prices and shares of energy companies also increased broadly, reversing a trend of recent losses.
Reports from the Gulf said that the laden tankers Front Altair and Kokuka Courageous suffered explosions, with one source describing the first as a 'torpedo' attack. Other sources suggested it could have been caused by a magnetic mine.
