Why Units of MPLX Rocketed 55% in April
Units of midstream energy partnership MPLX LP (NYSE: MPLX) rose sharply in April, gaining 55% according to data from S&P Global Market Intelligence. That's a huge reversal from March, when the units fell a painful 42%. The broader market followed a similar up-and-down pattern in March and April, but the size of the moves at MPLX were far larger. There's a lot going on.
Master limited partnership MPLX operates in the midstream sector of the energy industry. Broadly speaking, it helps move oil and natural gas from where they are drilled to where they end up getting used. It's generally a fairly stable business. However, COVID-19 has upended the energy market because of a steep drop in demand related to social distancing and the closure of non-essential businesses across the globe. There's a huge glut of oil and related commodities in the system, pushing energy prices sharply lower. March was a particularly bad month for the energy sector and anything related to it, which helps explain why MPLX fell so sharply.
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Source Fool.com
