Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Oil outlook 2024: ‘midstream stocks to offer strong income play’

Stacey Morris, head of energy research at VettaFi tells IGTV’s Angeline Ong why midstream energy can offer investors attractive income and relative insulation to commodity price volatility.

Video poster image

Morris mentions Williams Companies, Enbridge, and TC Energy.

(AI Video Summary)

OPEC Plus plans to cut production

Stacey Morris, head of energy research at VettaFi, recently appeared as a special guest on IGTV's "Trading in the markets" to discuss what's happening in the oil and gas market. She talked about how OPEC Plus, a group of oil-producing countries, plans to cut production, but this hasn't had much impact on oil prices. On top of that, there are concerns about ongoing wars and the possibility of the Federal Reserve reducing interest rates soon. Morris explained that the oil market is uncertain because people are sceptical about how much oil will actually be taken off the market in the first few months of next year. It turns out that the expected cut of 2 million barrels per day might be smaller than anticipated because the OPEC Plus group is having some issues with cooperation.

2024 projected as a tough year for oil

To make things more challenging, there are other countries like the United States and Guyana that are increasing their oil production. With all these factors combined, it seems like 2024 will be a tough year for oil, with not many opportunities for growth. Morris believes that oil prices will remain relatively stable with only slight improvements or declines. She doesn't expect any significant movements unless unexpected events occur, and she doesn't think oil prices will reach $100 per barrel next year. Given this outlook for oil prices, Morris suggests investing in the midstream energy sector. These companies are involved in operating pipelines, storage facilities, and processing facilities, which generate consistent profits. Even though oil and natural gas prices have been weak, midstream companies have performed well and provide generous dividends to their investors. Morris expects this trend to continue in 2024 as these companies prioritise returning cash to their shareholders.

Midstream energy sector: a different way to invest in the energy industry

When asked about potential disruptions to the midstream energy sector due to elections, Morris doesn't see it as a major threat. She believes that campaign promises often differ from reality, and the midstream sector is mainly driven by the volume of demand rather than political factors. While there may be more regulations around pipelines, it would only increase the value of existing assets. Morris also mentions some interesting smaller companies in the midstream energy sector, like Enbridge and TC Energy in Canada, as well as Kinder Morgan and Williams in the United States. These companies provide a different way to invest in the energy industry compared to larger European companies, and they offer stable income and defensive energy exposure that is less affected by changes in commodity prices.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

React to volatility on commodity markets

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

1In the case of all DFBs, there is a fixed expiry at some point in the future.

See opportunity on a commodity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a commodity?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Analyse and deal seamlessly on fast, intuitive charts
  • Get spreads from just 0.3 points on Spot Gold
  • See and react to breaking news in-platform

See opportunity on a commodity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.