NEW YORK (TheStreet) -- Shares of Frontline (FRO) were gaining 38% to $2.25 Friday following reports that a record number of oil tankers are sailing to China as the country is starting to stockpile oil.
A total of 83 very large crude carriers, such as those owned by Frontline, were sailing to Chinese ports Friday, according to Bloomberg. The ships would be able to transport 166 million barrels of crude oil, assuming standard cargo limits.
Shipping rates for tankers from the Middle East to Asia increased to $83,605 on Friday, according to Baltic Exchange data, the highest prices since January 2010. Swaps on the route point to daily average earnings of $77,964 for tankers in December.
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TheStreet Ratings team rates FRONTLINE LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTLINE LTD (FRO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself."