LNG Shipping Market Sees Volatility: UPI Gains Slightly Amid S&P 500 Decline

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  • The UP World LNG Shipping Index (UPI) experienced a slight increase of 0.2% last week, closing at 152.38 points.
  • This index, which tracks the performance of companies specializing in LNG shipping, contrasted with the S&P 500 (SPX), which declined by 0.51%.
  • The week was marked by significant market volatility, especially on Wednesday, but ended positively for most U.S.-listed LNG shippers.

Key Movers in the Market

  • SM Korea Line Corporation (KSE: 005880) led gains with a 13.7% rise, continuing its upward trend after a previous strong performance in May.
  • Awilco LNG (OSE: ALNG) in Oslo saw an 8.9% increase, following a period of steady growth.
  • Excelerate Energy (NASDAQ: EE) rebounded with a nearly 4% gain after two weeks of losses.
  • Other notable gainers included Chevron (NYSE: CVX), Shell (NYSE: SHEL), Dynagas LNG Partners (NYSE: DLNG), BP (NYSE: BP), Mitsui O.S.K. Lines (TSE: 9104), and Capital Product Partners (NASDAQ: CPLP), each rising by 2-3%.
  • NYK Line (TSE: 9101) also saw a modest increase of just under 2%.

Notable Declines

Cool Company (NYSE/OSE: CLCO) had the largest loss at 5.6%, followed by Exmar (BSE: EXM) with a 4.1% decrease, amid concerns about potential delisting due to erratic stock movements.

Nakilat (QSE: QGTS), Flex LNG (NYSE/OSE: FLNG), and Golar LNG (NASDAQ: GLNG) also saw declines of 2-3%, though these movements were considered more corrective than indicative of a trend reversal.

Overall Market Sentiment

Despite the volatility, the UPI maintained high levels for the year, with LNG shipping stocks showing resilience. The market trends did not indicate a significant shift, although some corrective movements were observed.

About the UP World LNG Shipping Index

Established in 2020, the UP World LNG Shipping Index is a rules-based stock index that measures the performance of global publicly traded companies involved in LNG maritime transport. Covering 18 companies from regions including the USA, Qatar, Japan, Norway, South Korea, and Malaysia, the index represented over 65% of the world’s LNG carrier fleet in 2020. The UP Index offers premium and trial access to comprehensive market charts.

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Source: LNG Shipping Stocks