UPI Drops 3.36%, Breaches Key Support Levels Amid Market Downturn

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Mfame Editor
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  • Tsakos Energy Navigation Leads Decliners with 10.2% Loss.
  • Chevron and New Fortress Energy Face Significant Losses.
  • UPI & S&P 500 Both Experience Declines, UPI Shows Weaker Performance.

The UP World LNG Shipping Index (UPI) was down 3.36% last week, ending at 158.18 points as the S&P 500 slid 1.99%. The losses were attributed to overall global market declines that featured the Federal Reserve meeting and early-week losses in the LNG shipping sector. The UPI fell below critical support levels, including the long-term MA-40 moving average, reports LNG Shipping Stocks.

Big Stock Falls

The most significant loss in the UPI was recorded by Tsakos Energy Navigation, which fell by 10.2%. Other notable decliners included Chevron (-7.2%) and New Fortress Energy (-6.6%). A limited number of companies saw gains, with Cool Company increasing by 1.1%. Despite the downturn, the long-term outlook for the UPI remains positive, supported by industry improvements such as retiring older vessels.

UPI & S&P 500 Comparison

The UPI finished the week down 5.51 points, or 3.36%, closing at 158.18. In contrast, the S&P 500 fell by 1.99%. The overall picture of both indices had losses with the UPI dropping through some strong support around 163 points and down to a long MA-40 moving average. Its volume was above average with a top single-stock performer up 1.1%.

Breakdown of Week’s Stock Performance

  1. Tsakos Energy Navigation (TEN): It suffered the largest decline of 10.2% to recover back to its end-2022 level.
  2. Chevron (CVX): Declined by 7.2%, approaching a support area of around $140.
    New Fortress Energy (NFE): Down 6.6% and displaying all hallmarks of a healthy correction.
  3. Excelerate Energy (EE): Declined 6.5% with the indications of a likely downward continuation.
  4. Golar LNG (GLNG): Declined by 4.9% which might suggest a correction in the uptrend.
  5. Shell (SHEL) and BP (BP): They declined by 4.6% each, close to their support levels.
  6. Flex LNG (FLNG): It dipped 4.3%, from its previous decline.

Losses in the Asian Market

Asian companies suffered relatively minor losses. Korea Line Corporation plunged by 2.9%, Nakilat retreated by 2.6%, and MISC plunged by 2.1%. Japanese companies suffered declines but were relatively minor declines, such as NYK Line (-1.3%), MOL (-0.9%), and “K” Line (-0.1%).

Companies with Smaller Declines

  1. Awilco LNG (ALNG): Dropped 1.1% but presents a potentially bullish pattern.
  2. Dynagas LNG (DLNG): The stock remained stable, showing no major losses.
    Positive performers
  3. Cool Company (CLCO): The biggest mover was Cool Company, which gained 1.1%. It reversed its previous decline.
  4. Exmar NV (EXM): Exmar NV also increased by 0.7%.

Market Outlook

The UPI can also be projected to grow a little pessimistic towards the short-term where there is a cross of UPI and moving average and may probably go way higher. These investors’ shorter-term concerns relating to the spot rates along with foreign markets’ potentials will make it more negative. In the long term, a positive one exists, though with policies that involve the elimination of paddle wheelers in steam-polluted areas, enhancing prospects.

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Source: LNG Shipping Stocks