THE WIRE

           Propane has been following crude prices, albeit, at a lower percentage of crude than historic values.  We have seen crude hit a yearly high for 2009 on October 21, 2009 at $81.99.  With crude in the $80’s range, propane has been running in the $1.00 plus range.  We believe propane should continue to follow crude running in the mid 50’s percentile to crude.

          The inventory levels at Conway and Mount Belvieu have been running significantly higher than normal.  We are over 70 million barrels going into the winter months.  Inventories are more than ample but it is the age long problem of getting the gas where the industry needs it when they need it.  The storages along the Teppco system are reported by Teppco as being full.  The big question remains:  will they be able to keep them at their required levels during the winter?

          Remember to keep your tanks and your customers’ tanks full throughout the winter months. 

         When doing prebuys for your customers, it is our belief that you should sell what you buy and buy what you sell.  Most traders will readily admit that they can't predict what the market will do.  As a retailer, the same holds true in our opinion.  When it comes to your prebuy positions, you should be evenly hedged.