The North American oil and natural gas midstream sector is certainly not “out of the woods,” but 2021 could look relatively “normal” in 2021, according to Raymond James & Associates Inc.

Though driven largely by supply, the Raymond James team remains bullish on the price outlook across the hydrocarbon spectrum. The analysts said the demand-pull environment “still looks attractive” in 2021 and beyond, with the recovery in U.S. liquefied natural gas (LNG) exports adding to a “solid base.”

U.S. LNG exports “have recovered massively thanks in part to soaring Asian prices — as about as good of a recovery play as one can find within the U.S. midstream space,” said the Raymond James team, led by analysts Justin Jenkins and J.R. Weston.

Furthermore, natural gas...