The Global X Research Team is pleased to announce the release of its MLP Quarterly Report, featuring key insights and opportunities in the midstream sector. The key takeaways below, as well as the charts included within this report, recap some of the key developments that impacted the midstream oil & gas sector over the past quarter.
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- Oil prices fell to ~$61 a barrel at the end of the 3rd quarter, following market forecasts for weaker consumption and OPEC's decision to raise production modestly. These factors weighed on crude oil prices as market participants adjusted their expectations to account for a potential surplus market. The OPEC decision to raise output also came earlier than many market participants had expected.1
- Proposed sanctions on Russian energy exports, alongside continued Ukrainian attacks on Russian energy infrastructure, led geopolitical risk premiums to expand for oil prices in mid-September. However, these risk premiums quickly deflated going into the end of the month, as weaker economic data and bearish sentiment regarding oil market fundamentals resurfaced.2
- The U.S. Energy Information Administration (EIA) forecasts that natural gas production could rise to 118 billion cubic feet per day (Bcf/d) in 2026. Production growth is expected from the Appalachia (Marcellus), Permian, and Haynesville Shales, the most prolific natural gas basins in the United States. New takeaway capacity from pipeline additions, energy demand growth, and an expansion of U.S. LNG export capacity are all expected to contribute to rising production.3
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