a blog dedicated to the discussion of MASTER LIMITED PARTNERSHIPS and the day to day news related to the group...along with perhaps a few other things...as long as the conversation is kept civil. Although i have no problem telling you what i am doing regarding my trades...PLEASE DON'T ASK ME WHAT YOU SHOULD DO REGARDING WHETHER TO BUY, SELL OR SHORT!!! i am not in the stock business.
Wednesday, July 09, 2008
Okay so far so good with a nearly 5 point bounce on the MLP index which is well outperforming everything else for a change. But its a long day ahead.
Can anyone tell me how the price of oil affects pipeline MLP's like Nustar ? If price of oil goes up is that good or bad for the Stock price? Also, anyone know why MLP's have gone down so much this year? Thank you
Generally speaking the price of crude or natural gas has minimal impact. Where MLP's are exposed they tend to hedge 70% or more of the exposure.
A sudden rise in product prices (gasoline, diesel, jet fuel etc) can cause a decrease in consumption, less throughput in pipes, thus less fee revenues for transport and storage.
We are all asking the same question as to why MLP's have flopped. No fundamental reason.
BPL was down for 8 days in a row. Can we close green today?
ReplyDeleteFWIW, Picked up some EVEP
ReplyDeleteTee Leaves
To continue. EVEP seems to be selling near 47% of NAV.
ReplyDeleteTee Leaves
Can anyone tell me how the price of oil affects pipeline MLP's like Nustar ? If price of oil goes up is that good or bad for the Stock price?
ReplyDeleteAlso, anyone know why MLP's have gone down so much this year?
Thank you
Generally speaking the price of crude or natural gas has minimal impact. Where MLP's are exposed they tend to hedge 70% or more of the exposure.
ReplyDeleteA sudden rise in product prices (gasoline, diesel, jet fuel etc) can cause a decrease in consumption, less throughput in pipes, thus less fee revenues for transport and storage.
We are all asking the same question as to why MLP's have flopped. No fundamental reason.