NUSTAR GETS CHINA OIL!

At least for storage. No confirmation from Nustar yet but its another 400,000 barrels of storage which adds to the 5 million barrels rumoured last week to be in Nustar tanks. Might move the stock today. Also on the news front this morning Inergy LP is buying up some nat gas assets in upstate NY. The company has been firing on all cylanders lately as the stock is at all time highs.

Also this morning Enbridge Energy Partners (EEP) is dealing with what appears to be a small oil spill and they've shut some pipelines down as a result. No pre market indications here. Not much else happening on the news front this morning in MLP land.

New week begins with stronger stock futures and stronger crude this morning pre open. Nat gas is selling off a little as the US cold weather pattern looks to relax for a few weeks. This is typical in most winters. The atmosphere needs to reload and rebuild cold air and that takes time. Nothing on the upgrade downgrade list that i could find this morning.

We are in the 13th month of this bull market in mlps as we have doubled the Dec 24 2008 low around 145. The question is what lies ahead and some notes of caution i think are in order. Among other things this rally has co-incided with a big rally in corporate bonds and that spread has now droppped to under 2 points to treasuries. This does not leave room for much upside. Also note that mlp yields continue to come in. They are not at a point where you would be yelling sell but at least we should recognize that we are not going to be up 100 percent again this year. Short term corrections could come at any time but mlps will continue to at least move with the overall market.