Frontline Ltd., an oil-tanker company led by billionaire John Fredriksen, climbed the most in more than two months in Oslo trading as freight rates surged for the largest vessels loading in the Persian Gulf.
Frontline, based in Hamilton, Bermuda, gained 11 percent, the most since March 8, and where the stock was trading as of midday in the Norwegian capital, making it the biggest gainer on the Oslo stock exchange’s All-Share index. About 240,000 shares have been traded so far today, more than 85 percent of the average daily volume during the last three months.
Freight rates were “jumping” in the gulf last week, Erik Nikolai Stavseth, an analyst at Arctic Securities ASA, said in an e-mailed response to questions today.
“Frontline has the majority of its vessels operating in the spot market,” he wrote. “An increase in freight rates will positively impact Frontline’s second-quarter results.”
Hire costs for very large crude carriers on the Saudi Arabia-to-U.S. voyage surged 29 percent last week to 23.39 industry-standard Worldscale points, according to figures from the London-based Baltic Exchange today. That was the biggest weekly increase since the week ending Jan. 11, according to exchange data.
Charter rates for VLCCs on the benchmark Saudi Arabia-to-Japan voyage increased by 24 percent during the same period to 39.94 industry-standard Worldscale points, the exchange’s figures showed. That was the biggest weekly increase since the week ending Jan. 18.
A VLCC can haul 2 million barrels of crude.