Jordan Horoschak Oil Quotations

The production increase is more than what traders were expecting. We are going to see some more output in non-OPEC countries such as Mexico and Norway, and the second quarter is typically a period of seasonal slower demand, so those all those factors will play into an easing in oil prices.

Most oil companies will exceed estimates. If they don't, then there is probably a big problem underlying that. Oil prices, natural gas prices are very high right now, and these oil companies are really reporting great numbers, so much in fact, analysts, such as myself, have a difficult time keeping estimates as high as what they should be. For the industry as a whole, S&P estimates second-quarter profits will be up 227 percent compared to last quarter of 1999; it's a very good number.

Oil prices are high at $30 a barrel. The U.S. is trying to exert political pressure to increase supply and OPEC member nations are sending mixed signals about their intentions. We have a very volatile market here. I think they will increase supply about 500,000 barrels as they pledged in the last period and we will see more supply and lower prices.

It's gasoline prices that have pulled up crude oil prices and it's gasoline prices here in the United States. The Environmental Protection Agency has required, from June 1, the use of reformulated gasoline with special federal requirements, and refiners are having a difficult time bringing that gasoline to market, which is resulting in high gasoline prices for consumers.

It's really showing that we're burning this oil here in America at a very rapid pace. Refineries are churning out gasoline as quickly as Americans are using it.

The market is looking for any reason to bid the price of oil higher. The reason now is potential political or military tension in the Middle East.