The UP World LNG Shipping Index (UPI) declined by 1.60%, while the S&P 500 dropped by 2.27%. In a broader view, geopolitical risks in shipping routes slightly eased, but LNG spot rates remained low, prompting shipowners to withdraw older steam-powered ships from active markets, reports LNG Shipping Stocks.
Geopolitical influences
Geopolitical influences on shipping decreased slightly last week, but the Red Sea situation escalated again towards the end, causing route changes.
Spot freight rates remain low, prompting shipowners to withdraw steam-powered LNG carriers from the market.
At least seven LNG carriers are now in cold lay-up, with potentially more to follow. These ships are not removed from the global fleet but are not available for charter. Long-term contracts are not being offered, and short-term offers are below operating costs.
Increased Optimism
The UPI (likely an index tracking LNG shipping companies) didn’t break through resistance, but there’s increased optimism due to a broader range of companies showing growth.
- Despite no large jumps, buying pressure is strong, preventing significant price declines.
- Nakilat (QSE: QGTS) is rising, closing above previous highs.
- Cool Company (NYQ/OSE: CLCO) saw the largest growth, recovering from recent declines.
- Awilco LNG (OSE: ALNG) also corrected its decline.
- bp (NYQ: BP) showed an upside correction after a three-week decline.
- Golar LNG (NYQ: GLNG) corrected its monthly decline, returning to November levels.
- Shell (NYQ: SHEL) broke through resistance with high trading volume.
- Technical analysis suggests Capital Clean Energy Carriers (NYQ: CCEC) and Tsakos Energy Navigation (NYQ: TEN) are positioned for potential growth.
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Source: LNG Shipping Stocks
