United States Oil Fund
The United States Oil Fund (USO) rose 9.24% yesterday. USO tracks the daily movement in WTI (West Texas Intermediate) light crude oil. In yesterday’s trade, WTI crude oil for September delivery settled $3.96 higher, or 10.30%, at $42.56 per barrel. The world equity markets are recovering. Also, US crude inventory data showed a fall in crude supplies. For context, the upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 6.45% yesterday.
Nearly all of the upstream MLP stocks, that have already lost significant market value since the rout in the energy prices, soared yesterday. They tracked the huge rise in crude oil prices. The biggest gainers among upstream MLPs were Linn Energy (LINE), Vanguard Natural Resources (VNR), EV Energy Partners (EVEP), and Eagle Rock Energy Partners (EROC). They rose 37.44%, 14.44%, 14.29%, and 11.20%, respectively.
Upstream companies’ earnings are significantly tied to crude oil and natural gas prices. The United States Natural Gas Fund (UNG) tracks daily movements in natural gas futures. It fell 0.78% yesterday. We’ll provide an in-depth analysis on the market performance of the four largest upstream MLPs by market capitalization in a separate post-earnings analysis series. So, be sure to visit Market Realist’s Master Limited Partnerships page.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 25 midstream energy MLPs. It rose 2.92% yesterday. AMLP outperformed the SPDR S&P 500 ETF Trust (SPY) by 0.45 percentage points. However, it underperformed the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 3.53 percentage points in yesterday’s trade. SPY tracks the broader S&P 500 Index. It rose 2.47% yesterday. AMLP has returned -17.58% YTD (year-to-date), while SPY fell 3.05% over this timeframe.
USD Partners (USDP) was the worst performer among midstream MLPs at the end of trading on Thursday, August 27. It fell 1.37% yesterday.
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