MLPs Weak Last Week amid Crude Oil Volatility
AMZ fell 0.9% last week
MLPs were weak last week, which ended on September 8, 2017. It came after a decent rally in the previous week. The Alerian MLP Index (or AMZ), which tracks the performance of 50 energy MLPs, ended in the red last week, falling 0.90% during the week. Of the total 96 MLPs, 69 ended in the red, two remained unchanged, and the remaining 25 ended in the green.
MLPs had a good start to the week with a strong rally in crude oil prices. However, they turned to losses during the latter half of the week on concerns over Hurricane Irma and the corresponding weakness in crude oil prices. US crude oil fell 3.3% on Friday, September 8, 2017, to $47.50 per barrel. Friday’s plunge in crude oil could be attributed to fears over a possible fall in crude oil demand due to Hurricane Irma. For a recent update on crude oil prices, read Hurricane Season: Where to Place Your Energy Bets.
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Among the top MLPs by market capitalization, Energy Transfer Partners (ETP), Williams Partners (WPZ), and Plains All American Pipeline (PAA) fell 3.9%, 1.1%, and 0.80%, respectively. Enterprise Products Partners (EPD) ended the week 0.60% higher. We’ll look into the performance drivers for the top MLP gainers and losers in the next part of this series.
The Alerian MLP ETF (AMLP), which is comprised of 25 energy MLPs, fell 1.1% last week. It underperformed both the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P 500 ETF (SPY). SPY fell 0.40%, while XLE rose 2.3%.
The Alerian MLP ETF continues to see net inflows of funds. It had a net inflow of $5.6 million last week. The JPMorgan Alerian MLP ETN (AMJ) saw a net inflow of $11.5 million during the week.