Enrico Gaglioti serves as Co-President of FS Investments where he shares oversight of firm strategy and leads the distribution, operations and technology functions. Mr. Gaglioti has over 25 years of experience in the financial services industry, including product and business development, capital markets and investment management. Most recently, he was the Co-Founder and CEO of...

The global energy supply crunch could portend future energy market volatility.

Broad equity and credit markets pulled back in September, and energy markets followed suit.

Upstream and integrated oil companies bounced back in September while midstream performance was negative. Risks in Colorado weighed on midstream sentiment. Retail investors are increasingly using funds to access the energy infrastructure space.

Equity markets declined for the second straight month amid the ongoing pandemic and lack of U.S. fiscal stimulus, as a new surge in coronavirus cases has put a damper on the energy demand recovery.

Each energy sector sold off with the rest of the market in October. Crude oil prices saw their largest monthly decline since 2015, but are still up $5/bbl since the end of 2017. While October saw a reversal of some positive market trends, we believe long-term midstream fundamentals remain supportive.

Despite the rally, there still appears to be room to run for energy heading into 2021.

Oil prices plummet while energy assets fall more modestly. Midstream company results continue to belie market performance.

The energy sector showed strong performance as inflation and oil prices rose.

Market volatility hits energy sector in May | Oil prices: Another downturn or just a blip?