Due to the rising prices of oil and natural gas, energy was the only sector that saw solid results in September. Prices of energy will rise in winter as demand for oil and gas is likely to increase. Energy infrastructure stocks Western Midstream, Flowserve, Holly Energy, and Star Group are all well-positioned for taking advantage of the industry tailwinds. In September the markets were volatile, but controlled supply and high demand led to a rise in the prices for these commodities. OPEC and its partners decided this week to continue with their plan to gradually increase oil production. They also declined to scale up production. This week’s oil price reached $79 per barrel, its highest level since 2014. U.S. today closed at $5.68. That’s a 125% gain over last year.

Winter is approaching and the demand for natural gas and oil will increase, which should lead to higher prices. Energy infrastructure companies will be able to benefit from this. Investor interest in the energy sector is evident from the Energy Select Sector SPDR Fund’s (XLE (NYSE:)) 15% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 2.5% loss.

This backdrop suggests that it might be smart to place your bets on the energy infrastructure stocks Western Midstream Partners (NYSE:), Flowserve Corporation, (NYSE:), Holly Energy Partners (NYSE:), Star Group, L.P., (SGU).

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