Quarterly report pursuant to Section 13 or 15(d)

INVENTORIES

INVENTORIES

9 Months Ended

Sep. 30, 2014

4. INVENTORIES

Inventories include the following:

	September 30, 2014		December 31, 2013
	(thousands of dollars)
Raw material	$	3,802	$	2,403
Petrochemical products		8,154		9,660
Total inventory	$	11,956	$	12,063

Inventories are recorded at the lower of cost, determined on the last-in, first-out method (LIFO), or market. At September 30, 2014, and December 31, 2013, current cost exceeded LIFO value by approximately $1.7 million and $1.5 million, respectively.

Inventories serving as collateral our line of credit with a domestic bank were $4.3 million and $4.9 million at September 30, 2014, and December 31, 2013, respectively (see Note 7).

Inventory included products in transit valued at approximately $5.6 million and $4.4 million at September 30, 2014, and December 31, 2013, respectively.