Frontline Tankers Soar as Oil Prices Reach 6% Weekly Gain
Frontline shares have approached their 14-year peak after oil prices climbed 6% over the week, with Brent closing at $94.39 per barrel on Friday. This uptick has provided a stronger boost to tanker operator Frontline plc NYSE:FRO than to major integrated oil producers like Exxon Mobil Corporation NYSE:XOM and Chevron Corporation NYSE:CVX.
Exxon rose just 3.13%, while Chevron advanced 2.64% last week. Frontline, on the other hand, gained 5.97%. The company provides investors with more direct exposure to limited tanker supply and changes in trade channels.
The recent surge has pushed Frontline's shares to $43.67, marking their highest level since 2012 and standing just 3.3% under its 52-week high. Despite this momentum, analysts are divided on the stock's potential, with an average price target of $44.25 implying a possible upside of 1.3%.
Frontline is set to announce its second-quarter results on August 31, which will be closely watched for daily rates booked, vessel availability, and management's perspective on route duration. The tanker market remains tight due to ongoing shipping constraints in the Strait of Hormuz, where only seven commodity vessels moved through on Thursday, down from fourteen the day before.