Major Near-Term Uncertainties
•World demand remains strong, and winter is the world high demand season
•OPEC cannot control the market since it has little or no spare capacity
•Geopolitical unrest continues to cause crude oil supply interruptions
•Hurricanes created a temporary “gap” in U.S. supplies
•High refinery utilizations slow product rebalancing
•Timing to a more balanced market is highly uncertain
SThe near term future is highly uncertain.  We are seeing an unusual tight world market where even OPEC does not have control over the situation with little surplus production capacity.

SGiven the geopolitical unrest that exists, we continue to be subject to unexpected supply disruptions.

SThe United States is going into the winter season with a supply gap caused by a devastating string of hurricanes.

SAnd even when the tight market begins to ease, high demand and high refinery utilization worldwide prevents the market from rebalancing quickly.

SIn summary, timing to a more balanced market is highly uncertain.