John Kilduff Damage Quotations

Demand destruction fears are trumping fears about damage to oil facilities. It's not just Katrina that is hurting demand. High prices have strained economies, especially in Asia, and demand is being curtailed as a result.

The hangover from the damage done by Ivan is still on everybody's mind. We're still in that mode where any bullish news is tremendously bullish even if it's slight.

The IEA report reminds us that there could be a supply problem in the fourth quarter. Storm damage and the chemical workers strike in France are going to hurt supply. Given the levels we have fallen from, prices are beginning to look like a bargain.