Teekay Tankers Ltd (TNK)

[Ripcord01]

Stock broke 52 week high yesterday. Been on the move for the last few months.

Here is my take.

1) 2015 is the year when single hull tankers are finally done shipping oil in the majority of the international community. This means a lot of excess tanker capacity that has been out there is has been slowly going away over the last few years.

2) Lower oil prices means demand for oil to be shipped has gone up keeping the existing fleet in demand.

3) The price of oil has gotten so low that tankers are now being parked and used as floating storage. This reduces the transportation capacity of oil. *this is important* Because as more and more tankers get used in this fashion the more likely that any burp in the oil market like Libyan supply going off line, Iraq oil going off line, or OPEC cutting back will cause a spike in oil prices....and the demand for the remaining fleet of ships to be used to transport fuel will go up. Basically choking the transportation of fuel by sea will eventually cause oil prices to go back up as more and more tankers are used as floating storage.