Ramrod

Point/Counterpoint: David Andrew Taylor Misreads Current Oil Inventories

According to your source, the US consumed roughly 3.5 million barrels per day of refined product, not crude, in June 2006 (see tonto.eia.doe.gov/dnav...). Based on that it looks like the shortage (for 10 days consumption) is more like 35 MILLION barrels of refined product, not crude (which will be less).

So I am baffled by how your analysis extrapolates that to an 80 BILLION barrel refined products shortage.

Considering there is close to a billion barrels of crude on the water, last I heard, 35 million barrels of refined products doesn't really support prices at these levels. But, then again, my counting skills are often questioned by my dogs...