UPI Climbs Above 170 as LNG Shipping Shows Mixed Yet Resilient Gains

By
Mfame Editor
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8

  • Top Performers Include New Fortress Energy and Exmar.
  • Cosco, Awilco LNG, and ADNOC L&S Show Continued Upward Momentum.
  • Tsakos, MISC, Nakilat Show Mixed Movements and Resistance Levels.

The UP World LNG Shipping Index (UPI) climbed by 0.85%, reaching 172.14 points and moving comfortably above the 170-point threshold. It’s now just six points shy of its all-time high, showcasing the sector’s strength even with some mixed results from individual stocks. Attempts to achieve significant growth often resulted in price gaps at the opening, but as the week progressed, those gains were often corrected, leading to lower closing prices. Still, several companies managed to finish the week on a high note, closing above their previous levels, reports LNG Shipping Stocks.

UPI vs S&P 500 Performance

The UP World LNG Shipping Index saw a slight increase of 0.16 points (0.09%), closing at 172.30 points, while the S&P 500 enjoyed a rise of 1.22%. Preparations for winter are going well, with European storage facilities currently at an average of 80% capacity. The geopolitical landscape remains stable, which is helping to support the UPI’s steady performance.

Even though the UPI’s growth is modest compared to the S&P 500, it’s still on an upward path after breaking through the 170-point barrier. Interestingly, the ratio of companies seeing growth versus those that are declining was 10 to 11, with initial growth often followed by corrections by the end of the week.

Top Performing Constituents

  1. New Fortress Energy (NYSE: NFE) made a remarkable comeback, soaring 78.6% after successfully securing a gas supply tender for Puerto Rico.
  2. Exmar (BSE: EXM) followed closely with a solid gain of 9.4%.
  3. Capital Clean Energy Carriers (NYQ: CCEC) bounced back with a 7% increase, reversing last week’s dip below support levels.
  4. Cosco Shipping Energy Transport (SS: 600026) and Awilco LNG (OSE: ALNG) also saw gains of 5.6% and 5%, respectively.
  5. ADNOC L&S (ADX: ADNOCLS) continued its positive momentum, rising 4.6% and returning to levels seen at the end

Notable Developments

  1. Tsakos Energy Navigation (NYSE: TEN) kicked off the week with a positive gap but saw a decline, ultimately forming a red candlestick; in the end, it managed to close with a 1.9% gain.
  2. MISC (KLSE: 3816) climbed 1.6% but hit some resistance, moving sideways as it gears up for a potential new move.
  3. Nakilat (QSE: QGTS) edged up 0.3%, likely putting a stop to a minor decline while staying close to support levels.
  4. Golar LNG (NYQ: GLNG) took a hit, dropping 3.7% and breaking through its support.
  5. Dynagas LNG (NYSE: DLNG) fell by 3.1%, returning to the upper boundary of its previous support area.

Japanese Companies and Oil & Gas Producers

  1. ‘K’ Line (TSE: 9107) slipped 2.1%, NYK Line (TSE: 9101) decreased by 1.7%, and Mitsui O.S.L. Lines (TSE: 9104) fluctuated around support levels.
  2. Flex LNG (NYSE: FLNG) closed down 1.2%, retreating back to where it was in August.
  3. Oil and gas producers with smaller LNG fleets — BP (NYSE: BP), Chevron (NYSE: CVX), and
  4. Shell (NYSE: SHEL) — experienced minimal movement, ranging from -0.8% to +0.7%.

Outlook and Crystal Ball

Even with rising global uncertainty stemming from U.S. policies, the long-term outlook still looks bright. We can expect increased volatility in the weeks ahead, with LNG spot rates on the rise, though most UPI constituents will feel the impact only slightly.
Investors should keep an eye on potential breakouts at key resistance levels, along with policy changes, market competition, and upcoming corporate earnings. The long-term demand for LNG, bolstered by situational and management-driven actions as well as potential new contracts, hints at a promising future for the sector.

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Source: LNG Shipping Stocks