Kyle Cooper Crude Quotations

Natural gas is taking its cue from crude and is being dragged along for the ride.

We came in higher but couldn't hold it, which underscores the weakness of the market. The overall supply of crude is very adequate and there is no risk of a shortage out there.

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

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.

This market has moved higher on fear and sentiment and Bush may have succeeded in reducing some of the concern. Gasoline is getting whacked right now, which is pulling crude lower. His statements will have a psychological impact on the market but the physical impact is limited.

Crude hasn't been responding to fundamentals all year. I think crude has been $8 to $10 overvalued for some time and has been responding to the fear of what could happen rather than the reality of what is happening.

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.

The overall supply of crude is very adequate and there is no risk of a shortage out there. This is a big change from 2004 and the early part of 2005.