LNG Shipping Stocks: Mild Gains Stop Decline

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Last week, the UP World LNG Shipping Index (UPI) stayed at the previous level, gaining 3.79 points or 2.62%, closing at 148.50 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, experienced a gain of 2.49%.

LNG shipping stocks experience a decline

LNG shipping stocks experienced a decline until the Fed announcement when they joined the rest of the markets and rose. The chart indicates that UPI has been moving within a range of more than a year. UPI is expected to start a new trend soon. However, UPI’s rise was due to almost no declines, so the mild gains that prevailed were enough.

Japanese Mitsui O.S.K. Lines (TSE: 9104) gained nearly 6%, making the most gains. Exmar NV (BSE: EXM) gained 4.2%, while Chevron (NYSE: CVX) and Korea Line Corporation (KRX: 005880) moved up by 3.5%. The other gains were approximately 1-2%, which is not enough to break the resistance. Of course, increasing geopolitical dangers in the Strait of Hormuz and the drying Panama Canal hardened the sail. Closing the Suez Canal will mostly affect Qatar´s LNG export to Europe, so this might lower the risk of attacks on LNG carriers.

Dynagas LNG Partners (NYSE: DLNG) experienced the most significant loss, dropping by 4.3%. Excelerate Energy (NASDAQ: EE) declined by 2%.

In summary, the mild gains have stopped the decline, but we need more optimism and more significant gains for a new upward trend.

Week 51-2023: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices.com)

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Source: LNG Shipping Stocks

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