United States Oil Fund
In the last two parts of this series, we analyzed the best and worst performing midstream MLPs on Tuesday, August 25. To put those movements into context, we’ll analyze the performance of energy-related ETFs and upstream MLPs on the same day.
The United States Oil Fund (USO) rose 1.92% yesterday. USO tracks the daily movement in WTI (West Texas Intermediate) light crude oil. In yesterday’s trade, WTI crude oil for September settled $0.61 higher, or 1.60%, at $38.85 per barrel. The upstream energy company heavy SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 1.41% yesterday.
Most upstream MLPs, that have already lost significant market value since the rout in the energy prices, rose yesterday. They tracked the slight rise in natural gas and crude oil prices. Top upstream MLP losers include Vanguard Natural Resources (VNR), Legacy Reserves (LGCY), BreitBurn Energy Partners (BBEP), and Memorial Production Partners (MEMP). They rose 10.85%, 6.30%, 4.30%, and 3.92% yesterday, 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 rose 1.11%.
Alerian MLP ETF
The Alerian MLP ETF (AMLP) is comprised of 25 midstream energy MLPs. It fell 4.57% yesterday. AMLP underperformed the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by 3.39 percentage points and 3.16 percentage points in yesterday’s trade, respectively. SPY tracks the broader S&P 500 Index. It fell 1.18% yesterday. AMLP has returned -21.29% YTD (year-to-date), while SPY fell 8.89% over this timeframe.
For more company and industry analysis on MLPs, visit Market Realist’s Master Limited Partnerships page.