BMLP - Can Falling U.S. Production Benefit Midstream/MLP Equities?

• On the surface, declining production would seem negative for midstream/MLPs, but based on recent history, production trends in either direction do not seem to make much difference for equity performance.
• The last year of positive price performance for MLPs and the best annual performance for the AMEI Index was back in 2016, when oil and gas production fell but oil prices rebounded by over 40%.
• For oil prices, much depends on improving demand and progress with a COVID-19 vaccine. From a supply standpoint, greater discipline by producers may help US oil production avoid oversupplying the market to the detriment of oil prices.

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