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What Drove MLPs in the Week Ending December 15?

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AMZ rose 0.9% last week

MLPs were strong in the week ending December 15, 2017. The Alerian MLP Index (^AMZ), which includes 50 energy MLPs, had a strong start last week. However, it was slightly offset by a fall on Friday. Overall, it rose 0.9% during the week and ended at 272.4.

Out of the 93 MLPs, 62 ended in the green, 29 ended in the red, and two ended flat. Among the top MLPs, Energy Transfer Partners (ETP), Enterprise Products Partners (EPD), Williams Partners (WPZ), and Plains All American Pipelines (PAA) rose 6.3%, 4.6%, 3.2%, and 2.6%, respectively. Later in this series, we’ll discuss what drove the top MLP losers and gainers.

The Alerian MLP ETF (AMLP) ended the week 3.5% lower. AMLP outperformed the Energy Select Sector SPDR Fund (XLE) and the SPDR S&P 500 ETF (SPY)(SPX-INDEX) last week. XLE and SPY rose 1.6% and 0.2%, respectively.

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MLPs’ rise last week could be mainly due to a strong recovery in US drilling activity, strong crude oil prices, and a bounce back from the recent correction. US crude oil had a strong start last week. However, it fell slightly by the end of the week. Overall, crude oil ended the week 0.1% lower at $57.3 per barrel. Read Will Non-OPEC Oil Supply Dominate Oil Prices in 2018? for a recent update on crude oil prices.

Fund flows

The Alerian MLP ETF continued to see a net inflow of funds last week. ALMP saw a net inflow of $88.1 million funds last week. On the other hand, the JP Morgan Alerian MLP Index ETN (AMJ) saw a net outflow of $131.9 million funds.

Next, we’ll discuss the top MLP gainers last week.

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