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To: Terry D who wrote (73266)	9/13/2000 10:27:55 AM
From: isopatch	Respond to of 95453

Terry. Verleger was an oil bear near the 99'lows if memory serves. Lord save us from these experts, lol. Your sarcastic intro to the piece was well couched. Phil doesn't seem to think beyond beyond inauguration day. Is he running for a slot in the DEA? Isopatch

To: Terry D who wrote (73266)	9/14/2000 11:41:29 PM
From: dfloydr	Read Replies (1) \| Respond to of 95453

Sent to The Brattle Group. Mr. Verleger, Jr.: I read your recent article about a possible swap of SPR oil for future oil deliveries. I see a problem: you postulate that companies could return more oil than they get because future prices are lower than current prices. What do you suppose would happen if suddenly a bunch of companies were to try to buy up let us say April 2001 oil contracts in order to return oil to the SPR? I doubt very much that even the most prudent buying could keep those future prices at present levels. Sellers would be alerted, as soon as the draw down from the SPR was agreed to, that there would soon be soaring demand for future deliveries. I myself would probably jump in and buy future delivery contracts on spec. In sum, as a businessman, I think your suggestion is academically and theoretically workable, but would not function in a live marketplace. Sincerely, D. Floyd Russell