Kyle Cooper Rising Quotations

Rising inventories are keeping a lid on prices. Inventories are back at levels we last saw in 1999, but the price is still a couple times higher. The market has been remarkably resilient because there are fears of supply disruptions.

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.

Distillate inventories were up slightly but are not rising at a normal pace, so that is a little bit concerning,

This is a financial, fear-driven market. It is not fundamental, nor has it been since early 2003, when prices and inventories began rising in tandem. It takes very little for prices to rise.