Kyle Cooper Oil Quotations

Refiners don't buy crude oil to look at it. Once units are back on line we are going to see them produce a huge amount of petroleum products.

Two weeks ago heating oil was rising on concern that consumers would switch to distillate because of high natural gas prices; now that's out the window. It's incredible to see natural-gas supplies rise in December.

Wilma weakened a little bit and the path has it heading in a direction that won't impact oil production.

A larger-than-expected decline in crude oil may spook the market. There is a strong historical trend for inventories to fall at the end of the year, although it hasn't happened yet. Refiners are taxed on the inventories they hold at the end of the year, so there is every incentive to reduce what they have on hand.

There's plenty of supply. Crude oil supplies are above 320 million barrels, which is ample to meet demand from refiners.

The heating oil fundamentals are the worst since the winter of 1998-1999 when the price was 30 cents. There is plenty of supply and prices should be lower. It's too early in the winter but in a few weeks prices should be much lower.