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What Drove MLPs’ Performance in the Week Ended September 29?

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What Drove MLPs’ Performance in the Week Ended September 29? PART 1 OF 5

What Drove MLPs’ Performance in the Week Ended September 29?

AMZ rose 1.3% last week

MLPs had a strong start to the week ended September 29 due to the strong rally in crude oil prices. However, these gains were slightly offset by a decline during the latter half of the week. For a recent update and outlook on crude oil prices, please read Crude Oil Has Risen since June: Time to Short Crude Oil Futures?

The Alerian MLP Index (^AMZ), which tracks the performance of 50 energy MLPs, rose 1.3% during the week. Of the total 95 MLPs, 68 ended the week in the green, and the remaining 27 ended the week in the red.

What Drove MLPs’ Performance in the Week Ended September 29?

Among the top MLPs by market capitalization, Enterprise Product Partners (EPD) and Williams Partners (WPZ) rose 0.7% and 0.9%, respectively. Plains All American Pipelines (PAA) and Energy Transfer Partners (ETP) fell 1.8% and 1.1%, respectively. 

PAA’s decline during the week ended September 29 could be attributed to the US crude oil production decline report from the American Petroleum Institute (or API). The EIA (Energy Information Administration) reported that crude oil production rose to a 26-month high. However, this trend couldn’t help the stock recover during the latter half of the week. We’ll look into the performance drivers for the top MLP losers and gainers in the next article.

The Alerian MLP ETF (AMLP) rose 1.0% during the week. The ETF underperformed the Energy Select Sector SPDR ETF (XLE), which rose 1.9% on a strong week for crude oil. However, AMLP outperformed the SPDR S&P 500 ETF (SPY), which rose 0.7% during the week.

Fund flows

The Alerian MLP ETF has reported net inflows of funds for the past few weeks. In the week ended September 29, AMLP’s net inflow was $68.4 million. On the other hand, the JP Morgan Alerian MLP Index ETN (AMJ) saw a net outflow of $43.2 million during the week.

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