Silicon Investor (SI) -- The First Internet Community

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 : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: James Cherney who wrote (46549)	6/16/1999 8:28:00 PM
From: pz	Respond to of 95453

Wednesday June 16, 7:32 pm Eastern Time Oil down sharply on inventory woes,shares slip on profit-taking By Gene Ramos NEW YORK, June 16 (Reuters) - Oil prices ended sharply lower Wednesday amid concerns about rising inventories in the United States, while oil majors on Wall Street fell in a slight bout of profit-taking, analysts said. Oil for July delivery on the New York Mercantile Exchange (NYMEX) stumbled 61 cents to $17.94, breaking below the psychological $18-a-barrrel level. Speculators led by investment funds sold positions after the closely-monitored data from the American Petroleum Institute (API) showed U.S. crude stocks jumped 4.4 million barrels to 337.3 million barrels last week -- the highest level since mid-April. The buildup in crude stocks overpowered bullish sentiment in the API data showing gasoline stocks fell 2.2 million barrels. The drop in gasoline stocks was precipitated by increasing demand with the onset of the U.S. driving season, traders said. On a sour note, however, refineries were also cutting output of gasoline and other refined products because of poor profit margins, causing a draw on inventories. ''With refiners not increasing operations, that means more crude oil would be backed up,'' said one New York trader. On Wall Street, oil majors fell as investors either pocketed profits from recent gains or rotated holdings to other market sectors, analysts said. The Standard & Poor's International Oil Index (^SPOILI - news), which tracks the largest oil companies, fell 11.76 points, or 1.19 percent, to 974.11. In contrast, the Dow Jones Industrials Average gained 189.96 points, or 1.79 percent, to end at 10784.95 after new economic data showed inflation was in check. Losers among the oil majors were Exxon Corp. (NYSE:XON - news), down $1.56 to $80.56; Texaco Inc. (NYSE:TX - news) $1.19 to $64.38; Mobil Corp. (NYSE:MOB - news) $1.75 to $102.56; Chevron Corp. $0.19 to $95.81 and Atlantic Richfield (NYSE:ARC - news) $0.13 to $87.38. Other oil-related indices fell. The S&P Oil Producers Index (^SPOILP - news) ended at 63.95 points, down 0.67 or 1.04 percent. The Philadelphia Oil Service Index (^OSX - news) dipped to 78.39 or 3.53 points or 4.31 percent. Fadel Gheit, an analyst at Fahnestock & Co. said the day's small losses were due to some profit-taking. ''It's just a bump on the road..the overall outlook for oil shares remains positive,'' he added. Refiners bucked the trend as the S&P Oil & Gas Refining Index (^SPENRM - news), added 1.66 points or 1.49 percent to 112.95. Among the day's gainers were were Valero Energy Corp. (NYSE:VLO - news), up $0.25 to $18.63 and Sunoco Inc. (NYSE:SUN - news) $0.69 to $31.06.

To: James Cherney who wrote (46549)	6/16/1999 8:30:00 PM
From: pz	Read Replies (1) \| Respond to of 95453

Wednesday June 16, 6:52 pm Eastern Time FOCUS -U.S. to add 9.3 ml barrels to oil stockpile By Tom Doggett WASHINGTON, June 16 (Reuters) - The U.S. Government signed contracts on Wednesday with energy companies to add 9.3 million barrels of oil to the nation's emergency stockpile of crude oil. The oil will be turned over by the companies, including Mobil Corp (NYSE:MOB - news), Texaco Inc (NYSE:TX - news) and Shell Oil , in lieu of making cash royalty payments on crude found in the Gulf of Mexico. The arrangement is part of the Clinton Administration's plan to add 28 million barrels of so-called ''royalty'' oil to the Strategic Petroleum Reserve. While taxpayer money is not being spent to buy oil for the reserve, energy companies are avoiding paying millions of dollars in cash royalties to the government. The Energy and Interior Departments are overseeing the oil transfer program. The reserve was created after the 1973 Arab oil embargo and is designed to offset disruptions in oil supplies. The reserve currently contains 574 million barrels of crude in a series of underground salt caverns in Texas and Louisiana, with room to store another 107 million barrels. Combined with contracts awarded to energy companies earlier this spring to deliver 4 million barrels, the new deals bring the amount of oil to be transferred into the reserve to 13.2 million barrels. The oil transfers reached in the spring should be completed by August, while the latest crude will be delivered between this August and next February. The new contracts are the first to be awarded in a competitive process open to all companies holding federal leases in the Gulf and to oil traders that deal with offshore producers, the departments said. The quality of oil to be delivered to the reserve will be adjusted to account for transportation expenses from lease sites and quality differences. The administration plans to sign additional contracts later this year to meet its 28 million-barrel goal.