Oil Stocks: Phil Flynn, Alaron Trading

Phil Flynn, capital markets analyst, Alaron Trading

On Rising Gasoline Inventories:

that is incredible, considering gasoline supplies had fallen week after week..a building gasoline shows refiners really focused on gasoline..it shows how refiners refine to price and area where most expensive they focus on

On Less than Expected Crude Decline

Not necessary pressure on price of oil, in fact, in some ways that may be supportive because I was actually expecting big build of supplies in response to major drops that we have had last two weeks..last five weeks we have lost 20 million barrels of crude oil..because we have not recovered big drop, that is a little bit supportive

On Weather
Major focus since we came back..this has been weather phenomenon and market is focused..because of El Nino and global warming, this could be warmest year ever in 2007..there is one Arctic mass out there, but this has to come in quick order..there is a report that last month OPEC production actually increased..

On Crude Oil Price
we are actually recovering from those lows..lot of support down there..if not today, tomorrow we will find bottom..

On Speculative Money Exiting
it has been incredibly disastrous trade..where is the speculative money going? On the stupid stock market..we do not see same enthusiasm..I happen to believe funds drawn to strong fundamentals..because of weather and slow growing economy, fundamentals not as strong..last year we had risk premiums on Russia and Iran..alot of fears have calmed down and market not reacting to them as much..