The UP World LNG Shipping Index rebounded 1.03% to 162.37 points, recovering from last week’s long-term support test, while the S&P 500 declined 0.63%. However, the recovery remains tentative—UPI sits just above critical support levels, and the week’s median movement was precisely zero, reflecting a market in equilibrium. Trading volume dropped below its recent average, suggesting limited conviction behind the modest gains.
Japanese shipping companies drove the week’s recovery, with Mitsui O.S.K. Lines rising 3.86%, “K” Line gaining 3.15%, and NYK Line up 2.44%. New Fortress Energy gave back recent gains with a 19.75% decline, while Awilco LNG and Tsakos Energy Navigation each fell approximately 5.1%. Gas prices continued their decline across all markets, including Henry Hub, while spot charter rates edged marginally lower but remain elevated. All gains occurred within established sideways trading ranges, underscoring the week’s quiet, consolidative nature.
UPI & SPX
The UP World LNG Shipping Index, which tracks listed LNG shipping companies, gained 1.66 points (1.03%), closing at 162.37 points, while the S&P 500 index lost 0.63%. The chart below illustrates the performance of both indices with weekly data.
Broader View
UPI rebounded from support and strengthened slightly. This is positive news, but the movement still means little, as we are too close to the support line; continued growth or a new attempt to break below are both possible.
Gas prices have been persistently decreasing, with US gas from the Henry Hub also dropping, reversing last week’s rising trend.
Spot prices for LNG tankers decreased marginally but stayed high compared to earlier months.
Overall, it was a quiet week. The median movement was zero, and the traded volume dropped below its rising average.
Constituents
Movements in both directions were relatively moderate, with the traditional exception of New Fortress Energy.
Japanese companies played a significant role in strengthening the UPI, rising alongside it from its support levels. Mitsui O.S.K. Lines (TSE: 9104) increased the most, up 3.86%. Second was “K” Line (TSE: 9107), which rose 3.15%, and NYK Line (TSE: 9101) gained 2.44%.
Exmar (BSE: EXM) followed closely with a 2.39% increase. The remaining gains included a 1.75% rise for MISC (KLSE: 3816), 1.35% for Capital Clean Energy Carriers (NYQ: CCEC), and an identical 1.07% for Flex LNG (NYQ: FLNG) and Dynagas LNG Partners (NYSE: DLNG).
Nakilat (QSE: QGTS) increased by 0.38%. What they all shared was that these gains occurred within the sideways trading ranges.
The declines were somewhat more pronounced. The aforementioned New Fortress Energy (NYSE: NFE) dropped by 19.75%.
Awilco LNG (OSE: ALNG) and Tsakos Energy Navigation (NYSE: TEN) suffered losses that differed by around 1 per mille. Their losses were 5.14% and 5.13%, respectively. ALNG continues to move sideways, and TEN will be similar.
Excelerate Energy (NYQ: EE) lost 5% without a fraction of a per cent, but is still visually rising.
Korea Line Corporation (KRX: 005880) remained above its previous range despite a 2.87% decline. Golar LNG (NYQ: GLNG), meanwhile, failed to return to the range, dropping 3.33%. Shell (NYSE: SHEL) also fell out of the growth range, losing 0.9%.
Crystal Ball
The late-summer rise was rejected, and UPI returned to its previous range, where it now trades. This area provides firm support. In the short term, increased volatility among UPI constituents is anticipated.
The long-term outlook remains positive. Rising spot rates, scrapping of steam vessels and new liquification capacities push the sector higher.
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Source: LNGShippingStocks
