3 Midstream Stocks Positioned to Withstand Energy Price Swings
The overall energy sector is highly vulnerable to crude price volatility as prices of crude oil and refined products are driven by factors largely outside their control, including global supply-demand balances, OPEC+ production decisions, geopolitical tensions, weather events and macroeconomic conditions. Sharp movements in prices can materially affect earnings and profit margins, particularly for upstream players whose earnings are directly proportional to crude prices.
In contrast, the downstream sector’s earnings are inversely proportional to crude prices, while integrated companies are naturally hedged against volatility due to their presence across the entire value chain, from production to refining. However, unlike most…
