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To: Broken_Clock who wrote (46488)	6/15/1999 10:03:00 PM
From: Richard D	Respond to of 95453

Maybe we're missing some other news event out of OPEC or elsewhere. As an aside, I think there's a tendency for oil to keep rising as long as we're anticipating the known cutbacks to have some future inventory effect (since there is an ill-defined time lag.) There is a sense that higher oil is a sure thing since we all know compliance is strong. It then becomes only a matter of waiting for the figures to turn bullish regarding inventories, etc. Mediocre API figures only prolong the rally in a sense. Maybe it's farfetched, but it's a theory. Richard

To: Broken_Clock who wrote (46488)	6/16/1999 3:06:00 AM
From: upanddown	Read Replies (1) \| Respond to of 95453

PK I saw this on the Labpuppy oil service thread and it makes a lot of sense. Just one of the many anomalies that are possible when a country is importing 9-10 MBPD. A change in API numbers says more about price opportunity and tanker schedules than it does about domestic supply/demand. It could also be a bullish sign. Oil buyers who think prices are going higher would stock up now. Declining crude levels could indicate bearish sentiments. I'am surprised that domestic stocks have not come down but I think we need a new slogan about oil stocks, "Its the world, stupid"! <ggg> Crude available for sale follows the money. John What I have read (and I have no way of knowing if this is true) is that crude shipments are being diverted to the US market from elsewhere on the globe due to the disparity in pricing between WTI and other blends. For instance Brent trades about 2$/bbl cheaper. With this incentive refiners are more likely to import foreign blends than pony up for domestic grades. So while world surplus is declining, US inventory draws appear far less impressive.