Investors speed swam into the oil shipping business as an industry power player spoke on Thursday.
The CEO and chairman of Nordic American Tanker, Herbjorn Hansson, told CNBC that when oil is cheap people consume larger quantities of it; a positive response for the company. The stock holds a 13 percent yield and has only one asset — 26 SUEZMAXs, the CEO said. As he spoke, the Nordic American Tanker stock rose over 2 percent.
"People are starting to understand what we are doing," he said in a "Power Lunch" interview. "I am in the business of wealth creation."
While low oil prices have created concerns of the status of the global economy, Hansson considers that low oil is a "tax relief." The executive said during the interview that the company's daily shipping rate is $35,000-$40,000.