Why Nordic American Tankers Stock Skyrocketed 33% in April
Shares of Nordic American Tankers (NYSE: NAT) jumped a stunning 33% last month, according to data from S&P Global Market Intelligence. Although the broader rise in the stock market clearly helped, the real reason for the oil tanker owner's gains stems from the oil industry.
Oil prices are very low today because of excess supply. That's the current environment in the energy industry, but there are underlying dynamics that position Nordic American Tankers for a period of big earnings gains. The fact that supply is high is actually driven by two factors. The first is that there is too much oil, helped along by a since resolved price war that broke out between OPEC and Russia. (An additional contributing trend is the long-term rise of the United States as an oil exporter.) This situation was exacerbated by the steep decline in demand that resulted from the worldwide effort to slow the spread of COVID-19, which effectively shut down vast swaths of the global economy.
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Source Fool.com
