After all, midstream energy stocks—both MLPs and C-corps—justifiably sank with oil prices during the early part of the current downturn in oil, when the collapse in crude prices did in fact lead to a drop in U.S. production and, hence, pipeline throughput. But, more recently, the correlation between midstream players and oil has broken down, “since the retreat in oil prices has been largely driven by concerns that U.S. crude production will rise too fast,” according to Raymond James research.

Examining the relationship between midstream stocks and the price of crude oil was a challenge that analysts at Raymond James recently undertook in the face of something that, in their view, defied logic.

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