In last week’s issue we covered some of our broad thoughts and take-aways from this year’s MLP and Energy Infrastructure Conference (MEIC) conference including our view on a potential OPEC-plus agreement to increase production at the cartel’s meeting on June 22nd.
Over the past two weeks the big story in energy markets hasn’t been oil prices but oil price differentials and that relates to another major theme discussed at length at MEIC.
Just consider: Brent oil closed on Friday the 25th May at $76.44/bbl and as of the latest close it was trading at $76.65, up slightly over the past week. Meanwhile, energy stocks, as measured by the SPDR Oil & Gas ETF (NYSE: XOP) and the Alerian MLP Index are also trading higher.
However, scratch beneath the surface and there’s a lot more going on.
While Brent crude oil prices are trading around $76.65, the key US oil benchmark, West Texas Intermediate, ended the latest session at $66.88 trading at a near $10/bbl discount to Brent. Over the long haul, these two crude oil benchmarks – representing light, sweet oils of nearly identical quality – have traded roughly at parity.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Mar. 31, 2020
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.