Tanker stocks

Frontline (FRO) is up 14% in the past three days. Most of this is due to the news that the Prudhoe Bay oil field will be shut down, probably until February of next year. The oil will probably have to be replaced from the Middle East, a 70-day journey. On top of this speculation on spot tanker rates, there is the fact that 6.18 million shares of Frontline were short as of July. Now those short sellers are being squeezed out of their positions. Volume was 1.8 million shares Monday, 3 million Tuesday, and 2.2 million halfway through today. That's a total of 7 million. Average daily volume is 700K. Subtracted, that leaves us with 5.3 million. I think that Frontline could easily go a few dollars higher just on short sellers covering their losses.