That is the big story this morning as a pipeline in Minnesota that carries about 1/5th of the US oil from Canada blew up last night. It appears that this is the type of thing that will be repaired relatively quickly but the market is in shoot first ask questions later and has driven prices up 4 dollars in overnight markets. Not that these things ever happen at a good time but Enbridge holders just had their first distribution boost since the fall of Rome.
Meanwhile in a case of really good (or bad) timing Enbridge (EEP) announced a stock offering yesterday which sent the stock down in after hours by 2.48 to 50.94.
This could be one of those short term opportunities to pick up some cheap shares on a trade particularly if they throw them out the window this morning.
Meanwhile it wasn't until 2pm yesterday when MLPS where actually still down by 1 point on the index that prices turned around and we had an up close by 1 point (amazing!). There might be some catch up action at the open this morning but considering that nothing much has changed here in terms of the fundamentals...i.e. equity supply coming to market among other things, i remain skeptical on any rally. But the dow industrial chart below looks like we put in a short term bottom and we could work our way back to the top of the trading range which at least puts some support under prices.
Just a leftover news item from last night as Buckeye Partners (BPL) is sending 1.5 million shares to market in an offering. More supply kids.
Its an early post and there are no other corporate headlines so far this morning and no upgrades or downgrades but i will post headlines as they break.
joseph cioffi's Source Page - Associated Content
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