Oil Prices Fell, Dragged Top Midstream Companies Last Week



Oil prices fell

Crude oil prices fell more than 10% in the week ending November 23. The top midstream companies followed, even though the fall was less compared to the fall in oil prices. The Alerian MLP Index fell 3.3% for the week. In comparison, the Energy Select Sector SPDR ETF (XLE) fell 4.9%.

Crude oil prices have fallen ~34% from their October 3 high of $76.41 per barrel. Oil prices have fallen ~17% YTD (year-to-date). Read Top Investment Banks Staying Cautious on Oil: Your Move? to learn more.

The above graph compares the top midstream stocks’ performances last week. Kinder Morgan (KMI) and Energy Transfer (ET) each fell 3.9%. Williams Companies (WMB) fell 2.3%, while ONEOK (OKE) fell 5% for the week. The S&P 500 Index fell 3.8% last week.

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YTD performance

The Alerian MLP Index has fallen ~12% YTD. On a total return basis, which includes distributions, the index has fallen 4.8% YTD. The Energy Select Sector SPDR ETF has fallen 12% YTD. Kinder Morgan, Energy Transfer, and Williams Companies have fallen 12%, 20%, and 21%, respectively, YTD. In comparison, ONEOK has risen 8% YTD.

To learn about MLPs that are trading at an attractive yield, read Five MLPs Offering Attractive Yield. Next, we’ll discuss the MLPs and midstream stocks that gained and lost the most last week.


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