SUN - Why Sunoco LP Units Rallied 58% in April
Units of gasoline distributor Sunoco LP (NYSE: SUN) rose an impressive 58% in April according to data from S&P Global Market Intelligence. That was a big turnaround from March, when the master limited partnership was off by 42%. Yes, the broader markets were part of the story, with the S&P down 13% in March and up 13% in April, but there was clearly more going on at Sunoco, which ended the two-month period down about 8.2% overall.
Sunoco operates in the energy sector, which has seen huge upheaval of late due to a massive supply/demand imbalance that has left oil prices at painfully low levels. What's a little unique here is that Sunoco focuses on getting gasoline to gas stations. That's a vital service that wasn't impacted by COVID-19 non-essential business shutdowns. However, those shutdowns and social distancing requirements did materially reduce demand for fuel across the country.
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