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.
"When they consume more oil, that's more work to do," he said.
The Nordic American Tanker stock is up 34 percent in the past year. In this same vein, the Baltic Exchange Dry index is up 37 percent in the last month.
Chatter of an impending OPEC meeting sparked an oil rally on Tuesday, leading WTI closing up 5 percent. On Wednesday, however, oil traded lower as the alleged oil producer's meeting remains tepid. Hansson argues, however, that low oil prices are good for the economy.
Still, the CEO admitted there is a "caveat" to lower prices — "the financial sector may be suffering," he noted, adding that he remains unconcerned.