What: This morning, Liquefied Natural Gas Ltd (ASX: LNG) shares went into a nosedive following the release of the S&P Dow Jones June 2016 Quarterly Rebalance and a fall in oil prices overnight.

So what: Every quarter, S&P Dow Jones reweight their market indices, such as the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), based on a number of metrics including share price performance.

Despite its rise of more than 45% in the past month, LNG Ltd shares are down 75% year over year, so this morning’s announcement that the company was to be removed from the ASX 200 would leave few investors surprised.

Another issue weighing on LNG Ltd shares, as well as larger energy companies like Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) more broadly, is the fall in oil prices overnight. Despite the recent increase in prices, oil futures closed 1.3% lower at $US50.56 a barrel.

Now what: LNG Ltd’s recent share price rise appears unsustainable in this Fool’s opinion. The company is yet to produce any meaningful revenue from either of its two most promising projects in North America.

Therefore, until we see energy prices stabilise, or material developments at either project begin to take shape, I suggest long-term investors keep their distance.

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Motley Fool Contributor Owen Raszkiewicz owns one share of LNG Ltd. You can follow Owen on Twitter @ASXinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.