LNG shipping stocks declined last week as the UP World LNG Shipping Index (UPI) fell 1.36% to 162.14 points, breaking through a key support level it had hovered near in recent weeks. The index continues to drift within a narrow range, reflecting an extended period of sideways movement and subdued investor activity. Trading volumes remain below average, with broader sector sentiment still in a preparatory phase. Most constituent moves were moderate, but the overall ratio tilted strongly negative at 14 to 5. Tsakos Energy Navigation led decliners with an 8.2% drop, followed by Chevron and Exmar. On the positive side, New Fortress Energy stood out once again, gaining 10.1% amid otherwise limited upward movement. Despite the week’s overall softness, the tone remains seasonally quiet rather than structurally pessimistic.
UPI & SPX
The UP World LNG Shipping Index, which tracks listed LNG shipping companies, lost 2.23 points (1.36%), closing at 162.14 points, while the S&P 500 index gained 0.59%. The chart below illustrates the performance of both indices with weekly data.
Week 29-2025: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
Broader view
UPI broke through the nearest support level, which it had been approaching for several weeks, and immediately moved on to the next one. This is because the index has been moving sideways for several months, resulting in low volatility and levels that are close to each other. Trading volume remains below average. From this perspective, too, overall investors´ activity in the sector remains sluggish, with everything focused on the preparatory phase.
The movements of individual companies were generally moderate, with the ratio favouring declines 14:5. However, we include all results starting with a minus, and most of the movements were less than 1%.
Constituents
Tsakos Energy Navigation (NYQ: TEN) lost the most, down 8.2%. It was followed by two companies with almost identical declines, Chevron (NYQ: CVX) and Exmar (BSE: EXM), which lost 3.4% and 3.3%, respectively. They were followed by Shell (NYQ: SHEL) and BP (NYQ: BP) with losses of 2.8% and 2%. While Exmar is moving sideways due to its expected delisting, speculation about the buyout price is driving its movement, with Shell rebounding from long-term resistance. The previous two attempts at further growth have failed, but the price remains close to this critical threshold. The remaining companies in this group corrected their previous growth in the uptrend, although the chart for TEN is less clear.
New Fortress Energy (NYQ: NFE) performed well again, growing by 10.1%. This was the most significant growth and movement of the past week. Other growth did not exceed one per cent.
Overall, the week was negative, but movements remain small, as do volumes. We attribute this to the holiday season, but our outlook remains positive.
Crystal Ball
Despite the growing global uncertainty caused by the US administration, our outlook remains optimistic. However, we expect increased volatility in the coming weeks. LNG spot rates rise, but the impact remains marginal for most UPI constituents. The market is watching for potential breakouts at key resistance levels, which could determine the next direction of prices.
Our outlook remains steadfastly positive in the long term. The burgeoning demand for LNG, bolstered by situational or management-driven actions and the potential for new long-term contracts, paints a promising picture. Investors should watch policy developments, market competition, and upcoming corporate earnings for further direction.
Source: By Tomas Novotny, UP-Indices.com