Phil Flynn Supplies Quotations

Maybe the economy is not hurt as much as people feared. Tight supplies plus more demand means high prices.

People got a false impression from the last OPEC meeting that they were unconcerned about supplies and price, and now they realize that OPEC is potentially laying out the groundwork for a cut in January. They won't just let prices fall.

The market thought that, with extremely warm temperatures in the Northeast and refiners pumping near capacity, heating oil supplies would go through the roof,

Even though the forecasts are turning colder, traders are already thinking about spring. The market is saying we think the winter is pretty much over given the supplies that we have.

The strength in gasoline is supporting crude oil. It is a little early to be concerned about gasoline, but supplies have continued to trail year-ago levels week after week. Supplies are tight even with the high production rate and imports.

The inability to follow through yesterday and break through $58 makes it likely that we are close to the bottom and prices are set to rise. Demand is starting to improve and distillate supplies continue to fall. It will have to get cold at some point and we will be in trouble.