KERM'S KORNER Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KERM'S KORNER

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Kerm Yerman who wrote (14423)	12/19/1998 7:10:00 AM
From: Kerm Yerman	of 15196

IN THE NEWS / Oil Staggers Up After Latest Pounding LONDON, Dec 18 - Volatile oil markets paused for breath early on Friday following a dramatic collapse that wiped a further 11 percent from already battered prices. International benchmark Brent 13 cents gain in early trade to $10.22 paled against Thursday's slump of more than $1.20 a barrel. Some 1.8 million barrels per day (bpd) of Iraqi crude exports weighed on the market as supplies continued to flow on Friday despite a second wave of overnight U.S-led military strikes there. Border monitors from Dutch firm Saybolt, employed by the United Nations to check Iraqi oil sales under the exchange for food and medicine programme remained at their posts. Falls gathered pace on Thursday after a meeting of key producers Saudi Arabia, Venezuela and non-OPEC Mexico in Madrid failed to pull out any new moves to combat an imposing global supply surplus. The slump more than wiped out gains of over 80 cents made on Wednesday as the United States prepared to launch missile strikes on Iraq and traders wondered if the producer trio could come up with surprise new output cuts. It pulled prices back within range of 12-year lows set just last week at $9.60 and heaped fresh misery on oil producers already enduring the lowest yearly average price for over twenty years. The only concrete new measure to emerge from Madrid was Venezuela's commitment to extend cuts by six months to the end of 1999, matching pledges from Saudi Arabia and Mexico. This disappointed analysts who have been calling for a further 1.5 million bpd of producer cuts to try and pep up prices. But Saudi Arabia claimed to have secured a new commitment from Venezuela for a fresh attack on global oversupply. A senior Saudi source said the the three producers, who earlier this year marshalled a 3.1 million bpd producer cutback package, have no qualms about making further sacrifices. Venezuela has previously said it could not consider fresh cuts as its new government prepares to take office in February. The producer trio also agreed to enforce rigorous compliance with their combined cuts of 1.45 million bpd. Accusations of Venezuelan indiscipline was among the disputes that stopped OPEC reaching any agreement at an acrimonious November meeeting. Renewed co-operation could prepare the ground for potential new producer action early next year, analysts said warning that a long dispute over Iran's production level could block progress. Saudi Arabian oil minister Ali al-Naimi admitted on Friday that there is between 150 and 250 million barrels too much oil in the market. "It will take time between now and year end 1999 to withdraw this overhang," Naimi said in Norway for a consultative meeting with Oil and Energy Minister Marit Arnstad. Naimi said the supply glut had far more bearing on the state of the oil price than the conflict in Iraq. "There is too much oil on the market to worry about what is happening in Iraq," he said.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next