Midstream Can Weather Oil Price Volatility

Originally published May 2, 2024

In an environment of ongoing macro risks, oil prices remain volatile. Investors seeking energy sector exposure but concerned about oil and gas volatility should look to midstream Master Limited Partnerships (MLPs) for income stability and more defensive energy exposure.

West Texas Intermediate oil prices crossed above $80USD a barrel for the first time this year in March, peaking at nearly $87USD a barrel. However, prices slid in the last week on macro and geopolitical risk concerns. WTI crude prices closed today down nearly $8USD from March highs according to CNBC data.

Looking Beyond Oil Commodity Exposure for Opportunity

WTI price expecations 6 mos., 1 year, 2 years, 5 years

Image source: Dallas Fed Energy Survey

At the time of the first quarter Dallas Fed Energy Survey in March, prices sat near $82.50 a barrel.