Captain,
And another article:
IPE Brent surges on short covering, Mexico meet
LONDON, Oct 2 (Reuters) - IPE Brent crude oil futures surged late Friday to set the day's new highs on
pre-closure short-covering in case Saudi Arabia, Venezuela and Mexico agreed further output cuts,
traders said.
At 1930 GMT, November Brent last traded 28 cents higher at $14.39 a barrel, recovering from the
day's low of $13.93 triggered by a sell-off in New York and swiftly followed by locals in London. It
later settled up 25 cents at $14.36.
November NYMEX last traded 24 cents firmer at $15.67 a barrel. IPE gas oil earlier settled $2 down at
$123.25.
"It's short-covering before the weekend, not any real news yet," said one IPE trader referring to
Brent's rally. "There are some shorts in the market. People are covering in case something comes out
of the Mexico meeting."
"People want to cover themselves before they return to work on Monday should there be an agreement
on cuts at the weekend," said another trader.
Before Brent's late rally, traders said if the November contract pierced resistence at $14.22, buy
stops would likely be triggered.
Heavyweights Saudi Arabia, Venezuela and non-OPEC Mexico were meeting in Cancun, Mexico, on Friday
and were due to hold a news conference at 2130 GMT, over two hours after NYMEX closed.
Although the oil ministers of Venezuela and Mexico had dampened market expectations for output cuts
by saying that the topic was not on the agenda, some media reports suggested that Mexico could be put
under pressure to extend its accord of 200,000 barrels per day export cuts beyond the second half of
1998, traders said.
Saudi Arabia has also been reported possibly proposing further cuts if necessary together with other
Mideast Gulf producers if Venezuela and Mexico agreed to maintain production at current levels.
((London Newsroom +44 171 542 5387, fax +44 171 542 4453, london.energy.desk@reuters.com))
<0#CL:> NYMEX crude
<0#LCO:> IPE crude <0#HO:> NYMEX heating oil
<0#LGO:> IPE gas oil <0#HU:> NYMEX gasoline
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