Best Oil Tanker Stocks to Buy UK – Invest with 0% Commission

The subject of storing oil and other energy products is not a new one. Since oil has started to flow through the pipeline, storage was needed. Nowadays there is a huge demand for oil products. Oil tanker companies are thriving and have a big impact on energy prices like Brent crude oil and natural gas.

In this guide, we’ll help you find some of the best oil tanker stocks to buy in the UK. We’ll list the 10 best stocks and review each one of these stocks. We’ll also suggest the best brokers in the UK that offer you to buy oil tanker stocks and show you the full process of opening an account and how to place a buying order in the market.

Best Oil Tanker Stocks UK 2021

Need help finding the best oil tanker stocks UK? Below is a list of oil shares that could be set to surge in the upcoming year and beyond. Keep scrolling for a full review of each oil tanker stock.

  1. EuronavOverall Best Oil Tanker Stock to Buy in 2021 – Invest Now
  2. DHT holdings – Most Undervalued Oil Tanker Stock for Long-Term Growth – Invest Now
  3. Scorpio tankersBest Oil Tanker Cheap Value Stock – Invest Now
  4. Teekay tankersOil Tanker Stock with a Huge Upside Potential
  5. FrontlineBest Oil Tanker Value Stock in 2021
  6. Nordic American TankerCheap Value Oil Tanker Stock for Long-Term Growth
  7. International Seaways IncOil Tanker Stock With the Strongest Balance Sheet
  8. Tsakos Maritime Holdings – Income Stock with a Potential Upside of More Than 170%
  9. SFL Corporation LTD – The Most Diversified Shipping Stock
  10. Cheniere Energy – Innovative High Growth Oil and Natural Gas Company

Best Oil Tanker Stocks UK Reviewed

Even though the oil industry is currently recovering from the coronavirus stock market crash, it is crucial to analyze each stock and find out if the company is in a solid financial situation. This is particularly significant when we take into account the negative impact of the pandemic and lockdowns across the globe on energy-related companies. With that in mind, below we analyze the top oil tanker stocks in the market.

1. Euronav – Overall Best Oil Tanker Stock to Buy in 2021

In terms of market capitalization, Euronav is the largest oil tanker company in the world. As of February 2021, Euronav has a market capitalization of $1.8 billion and a dividend yield of 15.54%! The Belgium-based company is engaged in the storage and transportation of crude oil products through its fleet of over 70 ships that include 42 supertankers, which can each carry around 2 million barrels of oil.

Euronav shares trade on various stock exchanges that include the New York Stock Exchange, the Brussels stock markets, and Euronext. The Euronav share price was trading at around $13 per share in late 2019 and dropped to $7.36 over the past year due to fears that the coronavirus will slow down the economy. Since then, Euronav’s share price gained more than 23% as the stock market continues to push higher and the outlook for the oil market had improved.

Euronav stock all time chart

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2. DHT Holdings – Most Undervalued Oil Tanker Stock for Long-Term Growth

DHT Holdings Inc (NYSE: DHT) is one of the largest crude oil tanker companies with a market capitalization of nearly $1 billion and a trailing twelve months (TTM) revenue of $535 million. The Bermuda-based company, which was founded in 2005, trades very large crude carriers (VLCC) internationally with an overall fleet of 29 vessels. The DHT Holdings stock trade on the New York Stock Exchange, offering investors an annual dividend of around $0.20 per share, which represents a dividend yield of 3.50%.

DHT Holdings 5 Year chart

Generally, the DHT Holdings stock trades at a relatively narrow range, since 2012 though the stock fell by around 40% since March last year when the Covid-19 crisis started. At the current price, the stock seems to be trading at a discount and has long-term potential.

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3. Scorpio tankers – Best Oil Tanker Cheap Value Stock

Scorpio tankers is a Monaco-based marine transportation company that was founded in 2009 and has grown to become one of the largest oil tanker companies. With a fleet of 109 vessels (including Suzemax tanker) and a market cap of nearly $860 million. Recently, Scorpio tankers announced a fourth-quarter net loss of $76.3 Million and a net loss of $56.6 million for the three months ended December 31, 2020.

However, at the same time, Scorpio tankers also announced a cash dividend payment of $0.10 per share that is scheduled to be paid on March 15, 2021. As a matter of fact, over the last 12 months, the company distributed a total of $0.40 per share, which equates to a dividend yield of 2.42% at current price levels. Overall, Scorpio tankers are financially stable and strong with a total amount of $204.1 million in cash and cash equivalents as of February 17, 2021.

Scorpio tankers

As shown in the chart above, Scorpio’s share price has been on a long-term declining trend since 2015 when the stock was trading at around $100 per share. Last year, the Scorpio share price spiked in April due to the oil crisis in 2020 but then fell to a bottom of $8.88 in October. From the start of the year, however, Scorpio gained 31%, rising from $11.50 to around $14.76 at the time of writing.

The bottom line, Scorpio is an income stock with an annual dividend yield of 2.71%. Along with that, Scorpio stock has the potential to surge another 50-70% in the post-pandemic market as the COVID-19 vaccine will increase the demand for petroleum products worldwide.

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4. Teekay Tankers Ltd – Oil Tanker Stock with a Huge Upside Potential

Teekay tankers Ltd (NASDAQ: TNK) is an international transporter of oil products and one of the largest operators of mid-sized oil tankers. The company’s share price has been making steady progress since the beginning of the year, with a YTD return of over 22%. Still, Teekay Tankers Ltd is trading way below pre-Covid-19 levels. Just a year ago in April, the Teekay share price was trading at $25.18 per share. 

Teekay Tankers LTD 5 years chart

In terms of fundamentals, Teekay reported a fourth-quarter loss of $73.3 million in 2020, but it also reported a net income of $87.3 million, or $2.59 per share for the year ended, an increase of 138% from 2019. Generally, Teekay has a strong balance sheet and good liquidity, and, at current prices, the company has a PE ratio of 2.04 and a trailing twelve months EPS of 6.39. 

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5. Frontline – Best Oil Tanker Value Stock in 2021

Frontline Ltd. is a leading shipping company engaged in the transportation and storage of crude oil and petroleum products. The company has a market cap of $1.4 billion, making it the fourth-largest oil tanker shipping company. At present, Frontline has a trailing twelve months (TTM) PE ratio of 3.37, which may indicate that the stock is currently undervalued.

Analysts remain bullish on the outlook of Frontline LTD, largely due to the better than expected revenues in the fourth quarter of 2020. The fundamentals are strong overall, with the end of Covid-19 creating a surge in demand for oil storage and transportation companies like Frontline. Evidently, Frontline has a twelve trailing months revenue of around $1.3 billion and $1.22 billion for the fiscal year ended 31 December 2020, an increase of 28% from the previous year. Finally, at current prices, Frontline Ltd pays out an annual dividend yield of over 22%.

Frontline LTD 2-year chart

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6. Nordic American Tanker – Cheap Value Oil Tanker Stock for Long-Term Growth

Nordic America Tanker is a Bermuda-based shipping company that could be one of the best oil tanker stocks to buy right now. With a market cap of $500 million and TTM revenues of $406 million, the NAT stock could be a bargain, particularly as the market recovers and demand for oil picks back up. The stock is currently trading at $3.3 per share, after falling from a $7.3 per share level in April last year. Besides the upside potential, Nordic American Tanker offers shareholders a juicy dividend yield of about 4.8%.

Nordic American Tanker 1-year chart

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7. International Seaways Inc – Oil Tanker Stock With the Strongest Balance Sheet

Based in the New York United States, International Seaways Inc is among the largest oil and petroleum tanker companies in the world with a fleet of 36 vessels including 11 VLCCs, two Suezmaxes, four Aframaxes/LR2s, 13 Panamaxes/LR1s, and 4 MR Tankers.

Despite the mini-crisis in 2020, INSW actually had another year of growth. Its’ TTM earnings for the third quarter in 2019 were $4.40 per share, a 182% increase from $1.56 per share from the third quarter of 2019. in Q4, International Seaways Inc reported an EPS of $0.98, beating analysts’ expectations of $0.75.

INSW 5 year chart

The INSW share price, however, dropped by 8% over the past year. Just before the coronavirus pandemic, the company’s share price was trading at a record high around $30 per share. The share price has fallen to around $13.5 per share in October but then, surged back again in 2021 with a YTD of 12% at the time of writing.

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8. Tsakos Energy Navigation – Income Stock with a Potential Upside of More Than 170%

Tsakos Energy Navigation is a fairly small company in terms of market cap valuation and revenues. At the time of writing, TNP has a modest market capitalization of just $173 million. Nonetheless, this company is one of the largest oil tanker companies in the world with 64 modern crude, oil, and product tankers, LNG, and shuttle tankers. Tsakos is listed on the New York Stock Exchange (NYSE) under the symbol TNP and in the Bermuda Stock Exchange (BSX) under the ticker symbol TEN.

Looking at the all-time chart, we can see that TNP is trading at record low levels. Before the pandemic started, Tsakos was trading in an upward direction, reaching its highest level in two years of $22.5 per share. Since then, Tsakos was facing a drop in valuation to the all-time lowest level of $7.25. However, so far this year, Tsakos has gained over 15%, and the current consensus rating for the stock is sitting at ‘Buy’ with a price target that ranges between $11 to $41.5 (average of $22.7). This represents a potential upside of more than 170%.

In addition, Tsakos is a paying dividend stock with a current yield of 5.23%.

Tsakos Energy Navigation

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9. SFL Corporation LTD – The Most Diversified Shipping Stock

SFL Corporation Ltd is another Bermuda-based company that operates in various sectors of shipping and storage, including oil and energy transportation. Much like the vast majority of shipping companies in the market, SFL Corporation Ltd (NYSE: SFL) fell sharply over the past year and bounced back since the beginning of 2021.

SFL Corporation all time chart

Despite disappointing earnings results and the $187 million hit from its partner company Seadrill’s Chapter 11 filling, SFL Corporation Ltd is still a giant shipping company with a fleet of more than 80 vessels and a market cap of nearly $900 million. It also declared a dividend of 0.15% to be paid around March 30. Clearly, SFL Corporation is the most diversified shipping in terms of fleet, main shipping segments, and the products it transports. So, assuming the oil market doesn’t take another serious drop in the near future, SFL stock is likely to rise to pre-pandemic levels of around $12-$14 per share.

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10. Cheniere Energy – Innovative High Growth Oil and Natural Gas Company

Cheniere Energy is mainly a producer of liquefied natural gas (LNG) and one of the most unique and interesting investment opportunities in the energy market. In fact, this is the first American company to export liquefied natural gas and is a Fortune 500 company with a market cap valuation of over $17 billion. The company has over 1,370 employees in nine offices across the globe.

Cheniere is not a ‘shipping’ company, but it has several third-party and subsidiary firms that help it transport its natural gas and other energy-related products. Regardless, Cheniere Energy is one of the most promising energy stocks to buy right now. Although it had a bump in the road in April 2020, the Cheniere share price already rebounded to near-record highs. The only concern when we analyze this company is the high debt, and whether it will continue to grow at its previous rates of growth.

 Cheniere Energy 5-Year chart

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Are Oil Tanker Stocks a Good Investment?

An oil tanker, also known as a petroleum tanker, is a large ship that stores and transports oil and other energy-related products from one point of origin to another. Obviously, as demand for oil rises, demand for oil storage increases as well.

But, oil tanker stocks are a combination of shipping and energy-related companies due to the content of their cargo. It would therefore be fair to say that the oil tanker industry has a defensive nature and the majority of oil tanker stocks are less speculative than other industries or sub-industry like blockchain or airline stocks.

The energy sector on its own has seen a lot of volatility over the past year and is often considered not very stable. But,  when we take aside the oil price war and the risk of another lockdown, oil tanker stocks are the safest spot in the energy market these days.

Is It a Good Time to Invest in the Oil Industry?

Oil ShippingWhile there are many factors also at play that impact the oil market and the oil tanker industry, it all comes down to the question of when the coronavirus will be behind us and the global economy returns to equilibrium and pre-covid-19 levels. Generally, oil is the driving force of the global economy, and thus, demand for oil is expected to pick up when the global economy completely recovers from the negative impact of the coronavirus pandemic.

Indeed, there’s high competition in the energy shipping industry. Oil tanker companies transport 2 billion metric tons of oil each year, and thus, each company has to grab as much market share as possible. Therefore, the best thing, in this case, would be to have a diverse portfolio with investments in different oil tanker stock companies.

Best Oil Tanker Stock Brokers in the UK

So now that we have analyzed the best oil tanker stocks to buy in the UK, the next step is to find a stock broker or stock trading app that gives you access to the oil tanker stocks in the above list. The vast majority of oil tanker stocks trade on US stock markets so you’ll be better finding a UK-regulated broker that connects investors to NASDAQ and NYSE stock exchanges.

To help you find the right broker, below we suggest online stockbrokers in the UK that offer a great selection of oil tanker stocks to buy.

1. eToro – Buy the Best Oil Tanker Stocks with Zero Commission

Our top pick for the best broker in the UK to buy oil tanker stocks is eToro, one of the largest brokers in the UK and the biggest social trading platform in the world. eToro covers a wide range of US and global stocks, so you’ll get access to most of the oil tanker stocks we have suggested above. In addition, eToro offers a huge range of stocks from 17 different exchanges across the world and other popular markets that include Forex, commodities, ETFs, stock market indices, cryptocurrencies, and built-in portfolios. This means you can buy the best oil stocks and carry out oil trading with low fees.

The key feature of eToro that sets it apart from other online trading platforms in the market is the ability to use social trading tools via a web-based user-friendly trading platform. In that regard, eToro is not like any other trading platform where you need to spend days, weeks, and even months to utilize the platform and get familiar with the tools and features. Instead, eToro’s platform is very similar to any other social network you already know – you have a profile page, you can view posts and tweets, and contact other members of the broker’s network.

eToro homepage platform

67% of retail investors lose money trading CFDs at this site

This trading platform also lets you automatically copy trades of other investors on eToro’s network. The idea of the tool called CopyTrader is pretty simple – you can choose any investor you want to copy and then the software will mimic the trading activity of the chosen investor. In addition, eToro offers the Copy Portfolios, which are select combinations of assets based on a predefined strategy, industry, or region.

eToro copy trade

Best of all, eToro does not charge any trading commissions when you buy and sell financial assets. Instead, the broker makes money by charging a fixed spread. Other than that, you’ll have to take into account an inactivity fee, and a withdrawal fee of £4 when you wish to withdraw funds from your account.

If you want to get started, you need to meet the minimum deposit requirement of just $200, which is about £140. You can add funds to your account with a debit card, credit card, bank account transfer, or e-wallets like Paypal and Skrill. Finally, if you have any concerns about the safety of your funds, eToro is FCA-regulated and ensures the clients’ funds are well protected by the FSCS scheme.

Pros:

  • User-friendly online trading platform
  • Wide selection of oil tanker stock
  • Commission-free
  • You can also trade indices, FX currency pairs, ETFs, cryptocurrencies, built-in portfolios, and more
  • Supports social and copy trading
  • Accepts PayPal
  • Regulated by the FCA, ASIC, and CySEC

Cons:

  • Not suitable for advanced traders that like to perform technical analysis
  • Charges inactivity and withdrawal fee

67% of retail investors lose money trading CFDs at this site

2. Plus500 – Trade Oil Tanker Stocks with Low Spreads

Another excellent option for UK investors to get access to the stock market is through Plus500. Founded in 2008, this online trading platform provides users with the ability to trade on more than 2500 CFD assets, including some of the best oil tanker stocks UK and shipping companies.

Like eToro, Plus500 offers commission-free trading on its CFD products with very competitive spreads and very few non-trading fees. While Plus500 does not offer a social trading network, it does provide access to a variety of unique features and tools that include market sentiment, negative balance protection, price alert service, and guaranteed stop-loss order.

Plus500 Trading Platform

Plus500 also offers a wide range of stock CFDs on its user-friendly trading platform, it is available on web-browsers and as a mobile application. As a UK investor, you’ll be able to trade on all shares, including oil tanker stocks, with a leverage ratio of 5:1. The broker also charges some of the lowest overnight fees in the market for CFD products. 

If you wish to start trading oil tanker stock CFDs at Plus500, the minimum deposit is just £100. The broker also allows potential and existing users to use the platform on a demo account with virtual money. Finally, Plus500 is heavily regulated by several top regulators that include the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC).

Pros:

  • Heavily regulated CFD broker (FCA, CySEC, ASIC, MAS and more)
  • Commission-free trading
  • Access more than 2,500 financial CFD instruments
  • Competitive spreads and low fees
  • Excellent mobile application
  • 24/7 customer support

Cons:

  • Only CFD share trading available

72% of retail investors lose money trading CFDs at this site.

How to Buy Oil Tanker Stocks in the UK

By now, you should have enough information in order to decide whether you wish to invest in oil tanker stocks. We are now going to show you how to get started using our top pick broker, eToro.

Step 1: Open an Account 

In order to be able to buy oil tanker stocks via eToro, the first step is to open an online trading account. This can be done via the eToro website or the mobile app which is available on Apple Store and Google Play.

eToro registration

67% of retail investors lose money trading CFDs at this site

At first, eToro requires you to enter some personal information and complete a short questionnaire about your trading experience and financial status. This is because eToro must comply with FCA laws and regulations that include KYC procedures.

Step 2: Upload Documentation & Verify Identity

As part of KYC, users at eToro also must verify their identity before they can start trading. You will therefore need to upload documentation that shows your identity, proof of home address, and a bank statement. This could be a copy of your driver’s license or passport as well as a copy of a recent utility bill.

Step 3: Deposit Funds

The verification process at eToro may take up to several days, and you’ll get notified as soon as the broker approves your account. Then, you can add funds to your online trading account. In the UK, eToro maintains a minimum deposit requirement of around £140, which is around $200.

eToro deposit funds

When you are ready to make a deposit, eToro supports the following payment methods:

  • Debit/Credit Card (Visa, MasterCard, Maestro)
  • Paypal
  • Skrill
  • Neteller
  • UK Bank Transfer

Step 4: Trade Oil Tanker Stocks

Now you can choose one of the oil tanker stocks that are available on eToro’s platform and place a buying order in the market. If you already know the oil tanker stock you want to buy, then simply type the company’s name or symbol at the search bar at the top of the screen.

eToro oil tanker stocks

When the result appears in the drop-down menu, click on the trade button and an order will be opened up. In the order form, you need to choose the order type (market or limit market order) and the amount you want to invest in the selected stock. Then, click on the Set Order button.

eToro place order

Your capital is at risk.

Conclusion

The bottom line is that a modest oil price recovery is to be expected in a post-Covid-19 world. Notably, The U.S. Energy Information Administration (EIA) released its outlook that Brent crude oil prices will be trading at around $56 per barrel in the first quarter of 2021 and $52 per barrel over the rest of the year. Clearly, this was already achieved as Brent Crude oil is currently trading at around 64 per barrel. More importantly, global consumption is expected to recover by 5.5 million barrels per day in 2021. This could be the catalyst for oil tanker stocks to recover and grow.

While there’s always a risk in any investment, there’s big potential in the oil tanker market. So far this year, shares of oil tanker companies like Frontline, Nordic America Tankers, and Teekay Tankers have seen big gains and the momentum is likely to continue.

If you are ready to invest in oil tanker shares, eToro is one of the few brokers that allows you to buy shares with no trading commission, including some of the best energy stocks in the market.

eToro –  Buy Oil Tanker Stocks UK with 0% Commission

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

What is the forecast for the oil market in 2021 and beyond?

Overall, the outlook for the oil market is very optimistic. The IEA predicts oil demand will recover to around 97 million b/d in 2021, a recovery of 5.5 million barrels from 2020 levels.

What is the best oil tanker stock to buy in the UK?

Oil tanker stocks are performing very well since the beginning of the year. This can be attributed to the rise in demand for oil products and the generally optimistic outlook in the stock markets and global economy. From the list above, some of the oil tanker stocks with the highest upside potential include Teekay Tankers, Frontline, and Euronav.

Is there an oil tanker ETF?

Yes, the Invesco Shipping ETF tracks the Dow Jones Global Shipping Index which holds globally listed stocks in the Oil and Gas Storage and Transportation.

What is the best oil tanker dividend-paying stock?

Right now, the best oil tanker paying dividend stock is Frontline Ltd, which pays out an annual dividend yield of over 22%. Another great option is Eurona that currently has a dividend yield of more than 15%.

Why are tanker stocks rising?

Generally, prices of oil tanker stocks are correlated with oil prices and the demand for energy products. When demand rises, it leads to more cargoes for the oil tanker shippers, and thus, to an increase in oil tanker share prices. Ultimately, the biggest factor that impacts the oil tanker sector is the shift in the cycling demand for oil consumption in the world.

About Tom Chen PRO INVESTOR

Tom is an experienced financial analyst and a former grains derivatives day trader specializing in futures, commodities, forex, and cryptocurrency. He has over 10 years of experience in the Finance industry spanning across a day trader position at Futures First, and a web content editor and writer at FXEmpire. Tom is an expert in the areas of day trading and technical analysis as it applies to futures, cryptocurrencies, forex, and stocks. Tom’s primary interests include economics, trading, social-economic systems, technology, and politics. He has a B.A. in Economics and Management, a Journalism Feature Writing certificate from the London School of Journalism. Tom has written for various websites, such as FX Empire, The Motley Fool, InsideBitcoins, Yahoo Finance, and Learnbonds.

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