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.

Energy sector underperformance continues | MLPs have been MIA in 2019 midstream rally

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

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

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.

Energy markets rise as economic uncertainty intensifies | Saudi attacks: What happened, what does it mean?

The end of 2018 may not have been a temporary rough patch for traditional equity investments, but the beginning of what could be a more extended period of challenged profits and heightened volatility.

Expected equity volatility quickly settled though it continued to climb in the rates market. Our chart revisits the divergence.

The MOVE Index spiked from an elevated level while the VIX moved up, but from a decade-plus low.