So a number of organizations are reporting that the current negotiation deadlock among OPEC nations could possibly result in OPEC falling apart. Their primary duty has been to essentially establish and regulate an oligarchy – keeping oil prices high so all the oil companies profit handsomely.
Here’s my question. If oil prices fall, demand would ostensibly increase. Wouldn’t that benefit midstream (storage/transportation) agencies? Higher volume and no reduction of their fee structure.
I’m looking at $OKE, $ET, etc.
They all fell today. But if oil demand surges, it seems they stand to benefit, while all other associated industries would suffer (petroleum from decreased revenue and lower margins, alt energy from reduced demand, etc.).
Can we expect to see a strong rebound from the midstream group resulting from the overreaction of the market today?