Midstream started the week strong Monday, but the bounce back was short-lived as midstream sold off each of the remaining days of the week, even as oil prices stabilized and the broad market rallied. Canada and a few larger corporations dragged down broader midstream indexes relative to the MLP Index, which continues to hold up well in a backdrop of upstream carnage.
Week Thoughts: Sweltering Energy Discontent Hits Midstream
Midstream stocks, and MLPs in particular, held up ok this week, all things considered. This week saw a combination of negative macro forces converge to crush energy stocks more broadly.
Summer Cliff Notes: Answers to Common Questions on Midstream and MLPs
I have recently been receiving a flurry of more basic questions from advisors who appear to be circling back to the midstream and MLP sector after a long layoff. The questions sometimes reflect implied misconceptions in the question itself, but also reflect how little time advisors care to spend to delve into the nuance of the midstream sector.
Week Thoughts: Uptrend is Midstream’s Friend
Midstream rode higher commodity prices and a record-setting broad equity market to another positive week. The steady grind higher for midstream continues. This was the 6th straight positive week for the MLP Index, which is up up 5.7% over those 6 weeks (WTI oil price is up 13.1% over that same time).
Week Thoughts: Midstream Floats Higher in Light Action
On the week of America’s birthday, U.S. midstream (MLPs and corporations) outperformed Canadian ones, but the overall sector kept pace with a positive week for the S&P 500 and utilities. The AMNA crested 25% total return for 2019 so far and is off to a good start for the back half of the year.
Week Thoughts: Midstream Leads at Midpoint
MLPs finished positive for the week, making it three straight positive weeks for MLPs to close out strong month of returns helped by a bounce back in oil prices and broad equity markets. Utilities were soft this week, and came in with first half returns below midstream and below the S&P 500, despite nearly 70 basis point reduction in the 10-year treasury interest rate.
Week Thoughts: Risk On, Game On for Midstream
Midstream overall had a strong week, keeping pace with the S&P 500 as it reached fresh all-time highs Thursday after the Fed’s commentary was seen as bullish on expectations of a 2019 rate cut. MLPs underperformed after strong relative gains last week.
Week Thoughts: Just Ok is Ok for MLPs
MLPs finished just above flat for the week, while non-MLP midstream stocks were negative, in a pretty quiet market for equities.
Midstream Week Thoughts: Minority (Owners) Report
There was little need for Midstream and MLPs to show off their recently acquired defensive skills this week. U.S. stocks had their best week of 2019, trading up on hopes of future interest rate cuts to save the day.
Week Thoughts: Midstream Holds Up, The Sequel
In a repeat of last week’s storyline, Midstream and MLPs held up better than broader energy in a falling oil price and stock market. The primary difference being that this week’s losses were bigger all around.