ALDW is not as dependent upon Houston as some might think. Our refining facilities are not located in the affected areas. We serve states to the west and north. EXXON, however, is situated right in Beaumont, Texas, less than a couple of hours from Houston. EXXON reported this morning that it had shut down all refining. That will seriously impact things.
This places dramatic upward pressure on ALDW as we have added opportunity to feed into things on the supply side. And we get oil to refine from numerous sources so EXXON is not an end-all trading partner at all.
The net effect is that the crack spread is rising and it will continue to rise given dynamics in play. Also, bear in mind that part of logistics is crude storage so we're in the catbird seat at the moment. This was much of the basis for my reflections late yesterday and early this morning, explaining my spate of posts on NGL and ALDW boards.
As I look at my screens now I find ALDW is higher by 20 cents and NGL has nearly recovered altogether. All in all, I like the way things are turning out in terms of my day's trades.
I'm finding it interesting to be playing ALDW and NGL at the same time. Ordinarily they tend to operate as offsets to one another but today is quite a different story. I think ALDW will continue churning higher while NGL may actually move in parallel motion although much less convincingly so.
Someday people might even wake up to the fact that NGL IS A REFINER!
How do we spell s-t-u-p-i-d?
Oh, well---I bought 944 units of NGL on the cheap today, and am pleased. I sold 500 ALDW which I was very reluctant to do but it made a lot of sense due to profits within. And this sets up an IRA in a far better way so now the IRA is in wait mode.
Thanks for your positive acknowledgement, always gratifying to know you're being helpful. And good luck yourself, weather-wise.
And now ALDW sits up 32 cents above yesterday's close.
Dang, is this a great pick or not? lol
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