What can Midstreams Expect with OPEC Production Hike?

With the announcement that OPEC will increase oil production, I sense a lot of angst among investors relative to oil prices. Likely, this decision will lower price for awhile (if we follow the mantra of supply and demand as the official guide). However, midstream (i.e., MLPs) investors should not be affected as much since they serve as a toll gate for oil/gas transmissions. Regardless of the price of the product, pipeline carriers are paid (though it has been known that contracts can be amended lower). Still, lower prices would generate greater volume and theoretically hike revenues/profits for midstream companies. This is the logical approach. However, often, the financial markets act illogically and midstreams unfairly fall in price along with upstream and downstream entities. How can such frenzy be avoided, so that midstreams can realize stability/appreciation, while value is recognized and honored?  Are there other dynamics that I am overlooking? I welcome additional insight on this issue. Thanks! Charlie. 

 

 

 

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43 minutes ago, charles brown said:

 However, often, the financial markets act illogically and midstreams unfairly fall in price along with upstream and downstream entities. How can such frenzy be avoided, so that midstreams can realize stability/appreciation, while value is recognized and honored?  Are there other dynamics that I am overlooking? I welcome additional insight on this issue. Thanks! Charlie. 

 

The frenzy cannot be avoided.  All the players get caught up in it. 

Only two elements drive financial markets:  greed and fear. 

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Hi 

صحيح هناك  عنصرين تغدي الاسواق الماليه الجشع والخوف....ولكن لا ننسى الحروب و تجار الاسلحه  فهي ايضا ثؤثر على الاسواق الماليه ...فعند سقوط  بعض الدول فإن البعض الاخر  يقيم  دولته على أنقاض الدول المنهاره)الفاشله....

وفي النهايه  لكي  ندعم  الاسواق الماليه لابد من المخزون الاضافي  او ما يسمى بالمجنب من المال ...فمهما اتجهنا الى الموارد الطبيعه  فإنه لا غنى على الاسواق الحر 

TAREK  KREMID

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2 hours ago, TAREK said:

Hi 

صحيح هناك  عنصرين تغدي الاسواق الماليه الجشع والخوف....ولكن لا ننسى الحروب و تجار الاسلحه  فهي ايضا ثؤثر على الاسواق الماليه ...فعند سقوط  بعض الدول فإن البعض الاخر  يقيم  دولته على أنقاض الدول المنهاره)الفاشله....

وفي النهايه  لكي  ندعم  الاسواق الماليه لابد من المخزون الاضافي  او ما يسمى بالمجنب من المال ...فمهما اتجهنا الى الموارد الطبيعه  فإنه لا غنى على الاسواق الحر 

TAREK  KREMID

Hi, Tarek,and welcome aboard.  Please do try to do your posts in English, as that is the forum's common language and I suspect few folks here can read Arabic script!

Cheers,  Jan

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On 6/10/2018 at 6:47 AM, TAREK said:

Hi 

صحيح هناك  عنصرين تغدي الاسواق الماليه الجشع والخوف....ولكن لا ننسى الحروب و تجار الاسلحه  فهي ايضا ثؤثر على الاسواق الماليه ...فعند سقوط  بعض الدول فإن البعض الاخر  يقيم  دولته على أنقاض الدول المنهاره)الفاشله....

وفي النهايه  لكي  ندعم  الاسواق الماليه لابد من المخزون الاضافي  او ما يسمى بالمجنب من المال ...فمهما اتجهنا الى الموارد الطبيعه  فإنه لا غنى على الاسواق الحر 

TAREK  KREMID

Google Translate:

True, there are two elements that corrupt the financial markets greed and fear .... But do not forget wars and arms dealers are also affecting the financial markets ... When the fall of some countries, others are based on the ruins of collapsed states (failed ....

In the end, in order to support the financial markets, there must be the extra stock, or the so-called money-saver. As for the natural resources, it is indispensable to free markets.

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