Permian Trust units, which are heavily dependent on the future price of crude oil, were driven down in traded value because of the expected price shift. The price movement can be visibly traced in the following chart.
One of the more intriguing aspects of the chart is the defense of $6 as the current floor as the price of oil has approached $50 on the front month contract. Is this a potential sign that the market is entering a bottoming phase? Or, is there another leg down possible, and if so, what is the fair value of the Permian Trust Units if this happens? This report provides insight about the expected change in intrinsic value of the Permian units as the price war continues.