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

To: Think4Yourself who wrote (47468)	7/7/1999 1:37:00 PM
From: pz	Read Replies (3) \| Respond to of 95453

Wednesday July 7, 9:56 am Eastern Time Note: this article has a followup with more information. FOCUS-Oil keeps gains as OPEC holds line on cuts LONDON, July 7 (Reuters) - Oil prices were marginally lower on Wednesday, recoiling after sharp recent gains spurred by evidence of tight OPEC adherence to supply curbs. World marker Brent blend crude was down 11 cents in London at $17.99 a barrel. Oil prices have jumped nearly $2 in the past two weeks, the latest leg in a rally which has carried Brent up from sub-$10 lows in February. Dealers said some mild profit-taking on Wednesday had done little to dispel the bullish mood on oil markets where OPEC's determined effort to erase surplus petroleum stockpiles remains centre-stage. They said weekly U.S. petroleum stockpile and demand data, out later on Wednesday, would provide fresh clues on this year's unexpectedly strong U.S. oil consumption patterns. Algeria's OPEC President Youssef Yousfi on Wednesday underlined the cartel's policy not to waiver on tighter supply limits in force since April. In an interview in Algiers he ruled out any increase in OPEC oil output quotas before March 2000 saying there was a consensus in the cartel to stick by export limits despite rising prices. ''Yes, we are going to keep our agreement until March 2000,'' he told Reuters. ''I can speak on behalf of contacts through OPEC colleagues. This is the consensus inside OPEC,'' he said. Yousfi said he did not expect the market to return to balance completely until the year's end and dismissed concerns that the market might be overheating. ''The level of stocks is still very high. Producers still have to be very careful. I think the equilibrium will be reached by the end of this year or the beginning of next.'' By contrast, some analysts have said they expect surplus stockpiles to be erased by the end of September, leaving the market exposed to higher prices during the peak northern hemisphere winter demand season. ''By avoiding a significant second quarter build this year OPEC has done a great deal to meet its objective of eliminating excess inventories on world markets,'' said Washington consultancy Petroleum Finance. ''If the third quarter draw is as large as expected, the inventory surplus will be eliminated before demand peaks in the fourth quarter.'' OPEC compliance with the supply curbs in the last two months has reached 85-90 percent of targeted levels, according to Reuters' surveys. OPEC ministers have set a target price range of $18-$20 a barrel for Brent blend and delegates say the group is prepared to intervene in the market if prices move outside that range for any significant period of time. (Note: this article is ''in progress''; there will likely be an update soon.)