Michael Fitzpatrick Crude Quotations

The real dichotomy in this market is that crude inventories are very high and that could make for some violent, back-and-forth price action. For the foreseeable future, the path of least resistance remains up until there is a significant structural economic or political shift.

Crude oil will have to fall eventually because supplies are adequate and demand is not the greatest for this time of year. You can't justify crude oil at close to $60.

Crude is being held back by the apparent consensus that OPEC will keep pumping.

Crude inventories are at extraordinarily high levels, due in part to a steady flow of imports in recent months, giving the market a thick buffer against potential supply disruptions.

The mild weather and contracting demand are continuing to send us lower. Crude oil will soon test $56 and the products $1.50.

I'm expecting builds across the board. Imports should continue to arrive at a high rate, which will raise crude stocks, and refineries continue to return, which should do the same for the products.

The current perception is that there is enough crude and heating oil around, thus the slide in prices.