- UPI Outperforms S&P 500 with 1.48% Gain Amid Low Trading Volumes.
- LNG Spot Demand Rises in Asia as Atlantic Freight Rates Decline.
- Japanese Firms and Capital Clean Energy Lead UPI Growth.
UP World LNG Shipping Index Popped 1.48% Last Week The UP World LNG Shipping Index jumped 1.48 per cent last week to end at 169.60 points. That was faster than the S&P 500, which gained 0.85%. Trading volumes for the UPI’s constituent companies remained beneath the yearly average despite the advance. The advances were primarily from Japanese companies, Qatar’s Nakilat, and U.S.-listed Capital Clean Energy Carriers, reports LNG Shipping Stocks.
UPI vs. S&P 500 Performance
The UPI, an index of listed LNG shipping companies, finished this past week with an uptrend of 2.48 points, or +1.48%, to 169.60 points. The S&P 500 went up +0.85% in the same period. While the UPI had a positive run, trading volume in the UPI constituent companies was still less than their average for the year. The following chart plots the two indices based on weekly data.
LNG Market Dynamics
Reuters Weekly Summary quotes that LNG spot demand picked up substantially on Asian customers, while European storage is maintained at a healthy 95%. Week-on-week, the Atlantic freight spot rate slumped to $26,750 a day. It reports that LNG prices in the US fell below $3 with information coming in via Spark Commodities.
Top Performers and Decliners
Non-U.S. companies led UPI’s gain, without any discernible geographic trend in the movements. Major contributors included Japanese companies Nakilat of Qatar and Greece-based Capital Clean Energy Carriers, NASDAQ: CCEC. The leader was the latter with 6.9%, followed by NYK Line, TSE: 9101 at 5.5%, Mitsui O.S.K. Lines, TSE: 9104 at 2.9%, “K” Line, TSE: 9107 at 2.7% and Nakilat QSE: QGTS at 2.1%.
On the downside, Golar LNG (NASDAQ: GLNG) had the biggest drop at 3.1% after several days of rising. Contagion for the down day was spread amongst Dynagas LNG Partners (NYSE: DLNG) and Awilco LNG (OSE: ALNG), dropping 2.8% and 2.7%, respectively. BP (NYSE: BP), Shell (NYSE: SHEL), New Fortress Energy (NASDAQ: NFE), and Korea Line Corporation (KRX: 005880) suffered losses of 2.1% each.
Other Notable Moves
Flex LNG (NYSE/OSE: FLNG) and Tsakos Energy Navigation (NYSE: TEN) fell 1.7%. TEN avoided a deeper loss, but FLNG is approaching its long-term support. Excelerate Energy (NASDAQ: EE) reversed its earlier rally, falling 1.1%, but remains in an uptrend. Cool Company (NYSE/OSE: CLCO) dropped 0.7%, maintaining its downward/sideways trend.
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Source: LNG Shipping Stocks
