DCP - Oil Prices Drop Below $20 Dragging Down Midstream Stocks
With oil prices continuing to drop despite the recent moves to cut global production, those declines in commodity prices are dragging down every aspect of the industry. Even midstream companies, which are less directly exposed to the daily ups and downs of commodities, are suffering during this epic price rout.
With oil prices dropping below $20 today, and as new estimates of lower oil demand keep coming in, a slew of stocks were down double digits today. Here are several midstream companies and master limited partnerships that saw their share prices drop significantly on the day.
With the entire oil and gas industry in disarray from sharp demand declines and OPEC's swift 180 from unfettered production to a cut of nearly 10 million barrels per day, it should surprise no one by now that the price of oil is going to be extremely volatile on any given day.