Michael Fitzpatrick, vice president of energy risk management, Fimat USA

Oil Inventories
Market is focusing on gasoline, close to 200 million gallons of storage, which is market generally feels needed for driving season....while we are above those numbers, daily refinery glitches, not replenishing what we should..we are seeing numbers for demand that several years ago we would have seen during driving season, close to 9 million barrels daily..once you get to driving season, sure it will go over 10 million..with refineries only at 87% capacity, could be dangerous to markets..

Refineries

Infrastructure is aging, heavy pressure of usage, breaks down..almost daily we have had stories of breakdown, I think will continue as season progresses

2007 Crude Price
even though we are maintaining estimate of $58US/year, we think you cannot view crude in isolation as industrial commodity, rather view as macroeconomic sentiment..focus on geopolitics, lot can go wrong..

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