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Weekly Recap: Analyzing MLPs in the Week Ending September 22

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Weekly Recap: Analyzing MLPs in the Week Ending September 22 PART 1 OF 5

MLPs Were Weak despite Crude Oil Rising Last Week

Amazon fell 1.7% last week

MLPs were weak despite crude oil gains in the week ending September 22, 2017. Crude oil went above $50 per barrel last week and stayed there at the end of the week. Read Can US Crude Oil Stay above $50 Next Week? for a recent update on crude oil prices.

At the same time, the Alerian MLP Index (^AMZ), which tracks the performance of 50 energy MLPs, fell 1.7% last week. Out of the total 96 MLPs, 55 ended in the red, four remain unchanged, and 37 ended in the green.

It’s unusual for MLPs to move in the opposite direction from crude oil. MLPs fell last week despite crude oil gains. MLPs might have fallen due to the sharp fall in natural gas prices and the general negative sentiment in markets due to more tension with North Korea.

MLPs Were Weak despite Crude Oil Rising Last Week

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Among the top MLPs by market capitalization, Williams Partners (WPZ), Energy Transfer Partners (ETP), Plains All American Pipelines (PAA), and Enterprise Products Partners (EPD) fell 1.9%, 1.8%, 1.1%, and 0.8%, respectively. In the next part, we’ll look at the performance drivers for the top MLP losers and gainers.

The Alerian MLP ETF (AMLP), which is comprised of 25 energy MLPs, fell 1.4% during the week. AMLP underperformed the Energy Select Sector SPDR Fund (XLE), which rose 1.2% due to strong crude oil. AMLP underperformed the SPDR S&P 500 ETF (SPY). SPY rose 0.1% last week.

Fund flows

AMLP continued to see net inflows of funds. AMLP had a net inflow of $12.4 million last week. The fund has seen $411.4 million of net inflows since the beginning of August. On the other hand, the JP Morgan Alerian MLP Index ETN (AMJ) saw a net inflow of $46.8 million last week. Overall, AMJ has seen a net inflow of $273.7 million since August 2017.

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