James Williams High Quotations

Natural gas in storage remains very high for this time of year and the most recent production numbers indicate that, had it not been for the hurricane production, would have been much higher in 2005 than 2004.

We have very high volumes in storage for this time of year. We are 16% above the five-year average and above last year's numbers.

The strong build in gasoline coupled by the fact that every major product has inventories above the high end of their average range for this time of year will add to the recent bearish sentiment.

The inventory gains were on the high side of expectations and all of the fundamentals point to lower prices as crude stocks, as well as all the major petroleum products, are well above the high end of the normal range.

The market seems to be on an emotional roller coaster balancing two conflicting items -- going up on the fear of a supply interruption with very limited spare capacity, and down on exceptionally high inventories and sufficient supply in the market.