Prime The Pump And Bailout The Brent

Name: Phil Flynn Company: PFGBEST

Years Trading: 25 :

The spread between Brent crude and West Texas had previously come in, especially after U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum reserve) fell by 6.7 million barrels which put US supply at 346.4 million barrels which is still well above the five year average.

Robert Campbell of Reuters News says writes, "Looking back at the impact of the Libyan civil war on the oil market the most remarkable fact is that the situation did not lead to an oil super-spike. After all, a scramble for sweet crude in 2007 is widely seen as the trigger for the spiral in oil prices until they hit nearly $150 a barrel. Although the data are still coming in, it would appear that the Atlantic basin refining sector is now more flexible, in part due to weaker demand and in part due to investments in new capacity. Sweet refiners may be suffering because of high crude costs, but the system as a whole is not breaking down."

He goes on to say, "The resilience of the market is all the more impressive once the other supply disruptions to the European short-haul sweet crude market are considered. Normal decline of the aging fields in the North Sea is well known, as is the extraordinary sequence of problems at several important production facilities in the area. Less discussed is the reduction in crude oil production in Azerbaijan, an important supplier of very-low sulfur crude. Combined with the conflict in Libya a huge amount of sweet crude oil production was lost to European refiners, many of which rely on short-haul cargoes. In the first half of the year sweet crude output from Azerbaijan, Britain, Libya and Norway was 215 million barrels less than in 2010. With this number in mind, the response of the International Energy Agency to the crisis --a release of 60 million barrels of strategic stocks-- seems almost timid. Doubtless, the IEA would argue that the problems in Azerbaijan, Britain and Norway were not the classic supply disruptions the agency is meant to guard against."

Mr. Campbell makes some great points and also provides justification for this year's earlier release of oil from the International Energy Agencies strategic reserves. That was a move that was criticized by many but now looks lke it was important to stop a super spike! We still feel the low for WTI oil is in for the year! Time to call me and open your account and get a trial to my daily trade levels. What are you waiting for? Just call me - Phil Flynn - at 800-935-6487 or email me at pflynn@pfgbest.com. Get the "Power to Prosper" by tuning into the Fox Business Network where you can see me every day!

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Phil Flynn

806 W. Washington Blvd.

Chicago, IL 60634

312 563-8344 / 800 935 6487

There is a substantial risk of loss in trading futures and options.Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

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