This article was originally published on ETFTrends.com.
July 1 carries a particular significance for many liquids pipelines in the U.S. Each year on this date, these pipelines are able to adjust their rates using an index based on inflation. This July marks the first adjustment with a new five-year level for the index. Today's note provides an overview of the Oil Pipeline Index and why it matters for midstream, especially in periods of inflation.
Liquids pipelines and other ***** ets following FERC's Oil Pipeline Index could increase rates by up to 1.43% on July 1.
The increase for July 2026 was the smallest of the last five years. However, rising inflation could drive a more noticeable increase for July 2027.
Whether based on the FERC index or another metric, long-term midstream contracts typically include an annual inflation adjustment. This and real ***** et exposure helps midstream/MLPs perform well in periods of inflation.
July 1 carries a particular significance for many liquids pipelines in the U.S. Each year on this date, these pipelines are able to adjust their rates using an index based on inflation. This July marks the first adjustment with a new five-year level for the index. Today's note provides an overview of the Oil Pipeline Index and why it matters for midstream, especially in periods of inflation.
Liquids pipelines and other ***** ets following FERC's Oil Pipeline Index could increase rates by up to 1.43% on July 1.
The increase for July 2026 was the smallest of the last five years. However, rising inflation could drive a more noticeable increase for July 2027.
Whether based on the FERC index or another metric, long-term midstream contracts typically include an annual inflation adjustment. This and real ***** et exposure helps midstream/MLPs perform well in periods of inflation.
3 months ago
