Good morning.

Crude is up this morning along with gasoline and nat gas.

Some corporate news to catch up on. Kinder Morgan says 7 of 9 terminals are back up. Awaiting electricity on the other 2.

Amerigas prices an offering yesterday for 2 million plus units.

Ramifications of Katrina...Rigzone has an arcticle about drilling off Florida. Seems like the hurricane reopens the debate on offshore drilling. Also from econobrowser is a piece on oil capacity. Interesting read.

In the interest of disclosure i took a trading position in Crosstex yesterday and Hiland Partners as well. This is swing trade for lunch money.

Ophelia stalled off florida east coast...could be lingering for days. Also disturbed weather in the southwest gulf of mexico is becoming better organized.

There has been this ongoing debate on whether greenjeans should raise rates at the next meeting or pause due to the hurricane. I suggest that perhaps the fed will do both...that is tighten another 25 basis points and then in its statement say its going to stop raising rates for awhile in order to access the impact of Katrina. Seems to me this should make everybody happy. Ten year rallying this morning with the 10 year yield down to 4.11. Ten yields backed up to the 34 day moving average where it hit resistance. Downtrend intact.