CRUDE OIL KEEPS ON MOVING WITH

OIL UP SIX OF THE LAST EIGHT

JOINING US RIGHT NOW IS TOM

KLOZA.

GOOD TO SEE YOU THIS MORNING.

>> YEAH, I THINK SO.

I MEAN, THE HOT QUARTER IS THIS

QUARTER AND THE NEXT 40 OR 50

DAYS ARE THE WILD 40 OR 50 DAYS.

IT COULD BE TUGGED UP BY HIGHER

GAS LINE PRICES OR IT COULD GO

UP WITH MORE RHETORIC INVOLVING

IRAN.

I MEAN, IF WE REALLY DO TRY TO

SQUEEZE IRAN AND SQUEEZE A

MILLION BARRELS A DAY OUT OF THE

MARKET OR EVEN MORE, BASED ON

SOME OF THE STATEMENTS, OIL

PRICES ARE GOING TO GO HIGHER.

I WOULDN'T BE SURPRISED TO SEE

BRENT PRICES AROUND $85, AND THE

U.S. CRUDE PROBABLY GET CLOSE TO

THAT, ABOUT $80.

BUT IT REALLY ALMOST NEEDS TO

HAPPEN IN THIS QUARTER.

WE'LL GET A BREAK AFTER THAT AND

THEN 2019 WE START IT ALL AGAIN.

MARIA: SOMEBODY MADE THE POINT

THIS WEEKEND THAT SOMEONE

THIS WEEKEND THAT OOMEONE

THIS WEEKEND THAT ONEEONE

THIS WEEKEND THAT ONE ONE

THIS WEEKEND THAT ONE OFE

THIS WEEKEND THAT ONE OF THE

PEOPLE ARE WORRIED THE SANCTIONS

ARE CUTTING BACK PRODUCTION IN

LOTS OF OIL-GENERATING

COUNTRIES.

>> YEAH, WELL, THE SANCTIONS IN

IF YOU GO BACK TO 2011 TO 2014,

YOU HAD SANCTIONS ON IRAN AT THE

END OF THAT PERIOD.

THAT REMOVED MORE THAN A MILLION

BARRELS A DAY OF CRUDE FROM THE

BETWEEN $450 BILLION AND

$480 BILLION FOR OUR GAT

$480 BILLION FOR OUR GASOLINE

THEN.

STILL ABOUT $90 BILLION MORE

THAN WE PAID IN 2016.

SO IT IS EXPENSE

SO IT IS EXPENSIVE AND PEOPLE

ALMOST HAVE AN INTERNAL

THERMOSTAT AS TO HOW MUCH THEY

SPENT.

>> ONE OF THE QUESTIONS I HAVE,

WE SAW BEFORE WHEN THIS HAPPENED

THERE WAS A CHANGE IN BEHAVIOR

IN THE KINDS OF VEHICLES THAT

PEOPLE WERE BUYING.

WE'VE SEEN SOME OF OUR

MANUFACTURERS ELIMINATE ALL CARS

EXCEPT FOR SUVS.

WHAT KIND OF IMPACT DO YOU THINK

THIS WILL HAVE ON THE AUTO

GOTTEN A BREAK RECENTLY.

SOME OF THE STANDARDS THAT WERE

RELAXED A LITTLE BIT AND PEOPLE

ARE BUYING MORE SUVS THAN

INSTRUCTION.

COMMERCIAL WHERE THEY SHOW SOME

GUY IN A BIG TRUCK DELIVERING A

CALF OUT IN THE HINTERLANDS.

YOU DON'T NECESSARILY NEED BIG

TRUCKS AND BIG SUVS.

I LIKE TO URGE PEOPLE NOT TO

NECESSARILY LIVE LARGE WITH AN

AUTOMOBILE BECAUSE I THINK IT'S

THE OTHER ANSWER, MORE SUPPLY IS

AN ANSWER BUT LESS DEMAND IS AN

ANSWER AS WELL.

AMERICAN AS SOON AS OIL GETS TO

LOWER NUMBERS, THEY START BUYING

BIG AGAIN AND THAT'S WHAT THE

GET PEOPLE TO CHANGE THEIR

BEHAVIOR UNLESS OIL IS -- YOU

GOING TO GET TO $100, UNLESS WE

ACTUALLY HAVE LIKE MISSILES

FLYING IN THE PERSIAN GULF BUT

$90 OIL COULD CHANGE IT.

IT COULD ALSO CHANGE IF THINGS

GET A LITTLE TOUGHER.

THIS IS ABOUT AS GOOD AS IT GETS

AS GLOBAL ECONOMIES GO.

SO WE HAVE TO MEASURE EVERYTHING

FROM HERE AS MAYBE THE HIGH

STANDARD.

>> TOM, REAL QUICK, SO MUCH OF

THIS CONVERSATION OF LATE HAS

BEEN ANY KIND OF A SHIFT IN

DEMAND THAT COULD BE SOMETHING

THAT MODERATES THE SKYROCKETING

PRICE OF OIL.

>> THE SHIFT IS PROBABLY IN THE

UNITED STATES.

WE'RE GETTING A LITTLE BIT

FATIGUED WITH HIGHER PRICES

PARTICULARLY, ALL OF THE

COUNTRIES THAT ARE PRODUCING A

A LITTLE REVVED UP.

THAT IS SOMETHING TO WORRY

ABOUT.

IF YOU GET A SLOWDOWN IN GDP OR

ANY KIND OF SORT OF A MALAISE OR

A SLOG, THAT'S GOING TO KNOCK

DEMAND DOWN TREMENDOUSLY.

THIS MONTH, HOWEVER, I THINK

WORLD USES 100 MILLION BARRELS A

DAY OF CRUDE OIL.

MARIA: BIG NUMBER.