When Will the Dead Cat Bounce?

Well, we must sadly inform the readership that, for the first time since Marine Money started to comment on the international shipping equity market, all arrows are pointing to a certain hot place down below. The fact that the Oslo market, accompanied by our shipping indices, is down is of no surprise, but that the cruise index is heading in the same direction has left a black mark on our calendar. Looking back at the numbers we used to build the index, we must travel back to July of last year to find a comparable set of miserable numbers, and we assume that no one has forgotten what preceded July.

The worst performing index this month was the offshore index – down 12.4% since February 3rd. North Sea oil, which traded over $11 per barrel in January, dipped very close to the $10 mark, which spooked many investors. The editorial staff of Marine Money will be very worried if it should fall below the “psychological price floor” of $10. We do not think anyone has the stomach to own oil service stocks if we were to ever see single digit oil prices.

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