MLP funds have come off in the last few weeks as oil has sold off. Overall commodity weakness was likely due to slower growth in Chinese activity. The sell-off in oil in particular was due to high inventories caused by shale supply in the US which tends to kick in above the $50 WTI price level. We think this is a relatively short-term phenomenon and expect the rebalancing in the oil market to feed through in the coming months as demand growth remain strong and inflation buoys broader commodity prices.
The following MLP closed-end funds screen well and we think deserve a closer look by investors.