Last week, the UP World LNG Shipping Index (UPI), the only stock index concentrating on LNG shipping firms, rose for the fifth consecutive week. UPI increased by 1.43 points or 1.50%, reaching 154.30 points. In contrast, the S&P 500 (SPX) index, representing U.S. stocks, gained only 1.01%. Both indices can be found in the image provided below.

Week 31-2023: Chart of the UP World LNG Shipping Index with S&P 500 (Source:
Week 31-2023: Chart of the UP World LNG Shipping Index with S&P 500 (Source:

UPI’s fifth weekly growth reached the first resistance at 154.6 points. Here also begins the area where the higher UPI values were rejected repeatedly, followed by a decline. So, we enter the critical phase and see whether the stock growth will continue. This area is marked on the second chart.

Week 31-2023: Chart of the UP World LNG Shipping Index with the resistance area (Source:
Week 31-2023: Chart of the UP World LNG Shipping Index with the resistance area (Source:

In March, the UPI experienced a turning point and began to move sideways after creating new higher highs. As previous UPI Weekly Reports have noted, the second quarter is usually the weakest for the LNG shipping sector. However, with the start of summer and the building of gas supplies, the winter season begins and, coupled with the growth of other shares, should lead to a breakthrough of the all-time high and continued growth.

Compared to two years ago, the LNG sector is in a significantly better position. Following a dramatic period of growth caused by the Russian invasion of Ukraine, this is the first period of “stable” development. This year, there should be no unexpected trades overbidding long-term agreements as in the previous year, and all participants have had time to prepare and sign contracts meeting their needs. The LNG shipping sector reflects this better and more stable outlook too.

We previously mentioned that some LNG shipping stocks had begun to grow above their current range. This trend has now strengthened, particularly in the case of Flex LNG (NYSE/OSE: FLNG), which saw a 4.6% increase. This was not only the biggest gain of the week among all UPI constituents, but it also meant that the closing price was the highest closing price since mid-May.

Cool Company (NYSE/OSE: CLCO) continues to follow the classical 1-2-3 up formation, with a 4.5% gain on NYSE and a 3.2% gain on the Oslo Stock Exchange.

All three Japanese constituents are also continuing the rise. NYK Line (TSE: 9101) and “K” line (TSE: 9107) gained 2.3 and 2.4%, respectively, while MOL (TSE: 9104) rose by 0.9%. While “K” line continues to grow to the highs last visited in 2007, NYK Line is nearing the resistance made in May 2022 and confirmed in February 2023. MOL will attempt to break through the resistance made in March 2022 and confirmed in August 2022.

These examples illustrate the opportunities and risks of the next phase of UPI’s development. While there is a new power in the LNG shipping sector, it must be stronger than the temptation to close a profitable position.

About: UP World LNG Shipping Index, established in 2020, is a rules-based stock index family designed to show and measure the performance of worldwide publicly traded companies involved in the maritime transport of liquefied natural gas (LNG). This unique index covers 19 companies and partnerships worldwide, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covers over 65% of the world’s LNG carrier fleet. UP Index is a premium service. We offer freemium (the basic chart of the UP Index and S&P 500 index) and trial access to all charts.

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