OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.
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Published on July 25
OPEC+ is opening the taps with steady production increases, creating more oil that needs to flow through pipelines and storage facilities. These companies get paid for every barrel that moves through their infrastructure.
While oil prices go up and down, these companies own the essential pipes, terminals, and transport systems that oil must use. More production means more business, regardless of commodity price swings.
Many midstream companies are known for attractive dividend yields, supported by steady cash flows from long-term contracts. Higher volumes could mean even stronger payouts to shareholders.
OPEC+ is maintaining its gradual oil production increases to meet rising global demand. This creates a steady flow of crude that needs to be transported, stored, and processed through critical infrastructure. Companies that own pipelines, storage terminals, and tanker fleets generate revenue from the volume they handle, making them direct beneficiaries of higher oil throughput.
These midstream companies operate essential infrastructure that's independent of oil price swings. They make money from the volume of oil moving through their systems, not the commodity price itself. This creates a more predictable revenue stream during periods of supply certainty, making this sector particularly attractive when production volumes are increasing.
Each company in this group was handpicked for their strategic position in the oil supply chain. They own critical infrastructure like pipelines, storage facilities, and transportation assets that become more valuable as oil volumes increase. Professional analysts selected these stocks based on their ability to capture increased business from OPEC+'s production strategy.
Basket market capitalisation summary and investor takeaways for a midstream-focused basket dominated by large-cap names.
WES: $15.34B
HESM: $6.98B
WMB: $76.13B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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11 of 15 assets in this group are rated Buy by professional analysts.
