The UP World LNG Shipping Index (UPI) gained 2.21 points or 1.45% last week, reaching a closing value of 154.66 points. This index monitors the stocks of companies that specialise in LNG shipping. In contrast, the S&P 500 (SPX) index, representing US stocks, lost 0.95%. The image below displays both indices.

Week 15-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
Week 15-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)

The volatility of UPI is currently low; however, this does not mean there are no trends or significant movements among the constituents. In the previous reports, we identified three potential trends and will revisit them later in this text. The low volatility is due to the off-season on the global LNG market. We anticipate the establishment of a new trend for UPI before summer or as a result of an external stimulus, mainly geopolitical. The three new trends were 1) investors’ confidence in the LNG market represented by Qatar´s Nakilat, 2) the growth of gas and oil drillers, and 3) ending the uptrend of the Japanese trio.

Nakilat (QSE: QGTS) lost 4.9% last week as it started closing February´s gap. There is still some space in the gap, but the resistance at 4 Rials seems unbeatable now. This trend is probably over.
The gas and oil drilling trio—BP (NYSE: BP), Chevron (NYSE: CVX), and Shell (NYSE: SHEL)—continues rising. BP and CVX gained about 2.5%, but SHEL broke the resistance up and gained 6.3%. The stock is now in a free space, and its rise should continue.

Last week, the Japanese shipping trio mostly experienced declines, but the nature of their weekly performance suggests that these declines may soon be over. NYK Line (TSE: 9101) saw a growth of 0.3%, Mitsui O.S.K. Lines (TSE: 9104) experienced a decline of 1.8%, while “K” Line (TSE: 9107) saw a decline of 1%. Although all these companies marked more significant declines, their prices were eventually pushed up, indicating an increase in the activity of buyers, either short-covering or new buyers.

Shell’s growth was the biggest gain of the last week. The second biggest gain was Golar LNG (NASDAQ: GLNG), which rose by 5.7%, probably setting a new uptrend to $28. Awilco LNG (OSE: ALNG) experienced similar growth of 5.3%, moving the stock back above the support at 7 NOK. The last constituent we mention is Dynagas LNG Partners (NYSE: DLNG), which gained 3.8% on a slightly above-average volume.

The most significant loss suffered by Nakilat was already mentioned. Excelerate Energy (NASDAQ: EE) lost 4.1%, but this loss can´t be taken as a bright sign. EE can both go up or down now. New Fortress Energy (NASDAQ: NFE) lost 3%, returning to the support level.

In summary, UPI goes sideways as its constituents mostly swing up and down.

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 18 companies and partnerships worldwide, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covered over 65% of the world’s LNG carrier fleet in 2020. 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.