The UP World LNG Shipping Index (UPI) dropped 2.04% (3.44 points) to 164.93, while the S&P 500 declined by 1.53%. European LNG demand remains strong as bunkers are about 33% full post-winter, but Asian LNG sales have slowed, making Europe the primary market. Spot rates stay low at around $28,000 per day. Meanwhile, market volatility was fueled by the U.S. administration's ongoing debate over imposing tariffs, which led to a sharp global stock sell-off.
UPI & SPX
The UP World LNG Shipping Index, which tracks listed LNG shipping companies, lost 3.44 points (2.04%), closing at 164.93 points, while the S&P 500 index declined by 1.53%. The chart below illustrates the performance of both indices with weekly data.
Week 13-2025: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
Broader view
In Europe, storages continue to be filled and are about 33% full after the winter. In Asia, on the other hand, LNG sales have declined, making Europe the main LNG market. Spot rates remain low at around $28,000 per day. This summary draws on a Global LNG report by Marwa Rashad of Reuters.
As a point of interest, Knutsen (owner) and Polish company Orlen (charterer) have taken delivery of their fifth and sixth LNG tankers at Korea’s Hyundai Samho shipyards. LNGPrime reported the news.
However, once again, the main course-setting stock factor was the US administration’s never-ending song of ‘Impose tariffs, don’t impose tariffs’. This time, the refrain was in favour of imposition, to which stock markets reacted with a sharp move downward globally.
Constituents
The UPI again failed to break its resistance and fell, similar to previous occasions. Its movement forms a sawtooth pattern, indicative of a will to rise, but it was spoiled by supersector circumstances.
New Fortress Energy (NYQ: NFE) saw the companies’ most significant move, this time heading lower and writing off over 20%. Even after the announcement of the sale of the Jamaican project to Excelerate Energy (NYQ: EE), both companies strengthened. The world turned south after announcing a new round of the US tariff war. EE wrote off 4% as a result.
Overall, the Japanese trio also lost ground, losing 4.1% for “K” Line (TSE: 9107) and 3.7% for NYK Line (TSE: 9101) and MOL (TSE: 9104).
Other losses have been as much as 2%, which is the case for BP (NYQ: BP). Dynagas LNG Partners (NYQ: DLNG) lost 1.7%, while Nakilat (QSE: QGTS) wrote off 1.2%—but the latter looks set to continue rising. Korea Line Corporation (KRX: 005880) dropped one per cent, and Awilco LNG (OSE: ALNG) returned to support with a half-per cent drop.
Surprisingly, though, there were companies that retained at least a small upside. Flex LNG (NYQ/OSE: FLNG) gained the most, 2.9 per cent, and Tsakos Energy Navigation (NYQ: TEN) gained 2.7 per cent. Shell (NYQ: SHEL) added 2.4 per cent. Other gains were at most a per cent.
Crystal Ball
Despite the growing global uncertainty caused by the US administration, our outlook remains cautiously optimistic. However, we expect increased volatility in the coming weeks. LNG spot rates stayed low, 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 price direction.
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