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15 handpicked stocks

OPEC+ Opens The Taps: Midstream's Moment

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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Author avatar

Han Tan | Market Analyst

Updated 1 day ago | Published at July 25

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

WES

Western Midstream Partners LP

WES

Current price

$38.45

HESM

Hess Midstream Operations LP

HESM

Current price

$41.17

WMB

Williams Companies, Inc.

WMB

Current price

$57.46

About This Group of Stocks

1

Our Expert Thinking

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.

2

What You Need to Know

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.

3

Why These Stocks

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.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+10.06%

Group Performance Snapshot

10.06%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 10.06% over the next year.

12 of 15

Stocks Rated Buy by Analysts

12 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚀

Volume Surge Ahead

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.

🔧

Infrastructure Goldmine

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.

💰

Dividend Powerhouses

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.

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