Kinder Morgan fell last week
Kinder Morgan (KMI) fell 2.7% in the week ending August 18, 2017. The stock fell 5.6% in the week ending August 11, 2017. Kinder Morgan has fallen 10.4% YTD (year-to-date). Kinder Morgan’s midstream peers Enterprise Products Partners (EPD) and ONEOK (OKE) fell 2.6% and 2.8%, respectively, last week. The Energy Select Sector SPDR ETF (XLE) fell 2.5% for the week. So, Kinder Morgan’s performance in the week was in-line with its peers.
The above graph compares Kinder Morgan’s stock performance last week with its peers. Broader markets (SPY) fell 0.6% in the week ending August 18, 2017, and outperformed the energy sector. The energy sector forms nearly 6% of the S&P 500 Index (SPX-INDEX).
Kinder Morgan stock has been impacted by the British Columbian government’s action against its Trans Mountain expansion project. Pipeline projects in America have seen severe opposition in recent years. To learn about a few of the controversial pipeline projects, read Controversy in the Pipeline: The Top 5 Hot-Button Projects.
Crude oil prices
Crude oil fell on the first three days of the week but recovered sharply on Friday and closed only 0.6% down for the week. Despite the recovery on Friday, higher US crude oil production might keep oil prices in check. Read Will US Crude Oil Production Overshadow Inventory Draws? to learn more.
On a YTD basis, Kinder Morgan has outperformed XLE, which has fallen nearly 17% so far in 2017. The energy sector has been severely impacted by the sustained weakness in crude oil prices as well as oversupply concerns. To learn more about factors that impact crude oil prices, read How Crude Oil Could Fall to $40 per Barrel.
Recently, Kinder Morgan stock fell below its 50-day moving average. In the next part, we’ll look at the stock’s moving averages.