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

To: Think4Yourself who wrote (47488)	7/7/1999 6:20:00 PM
From: Douglas V. Fant	Respond to of 95453

Ken- The Taoist Ying/Yang of oil: When crude prices rise then refiners' margins are hurt. Here's just a sample article that I pulled off of Yahoo from this afternoon that confirms that corollation... BP, Mobil refineries cut runs by 10-20 pct-source LONDON, July 7 (Reuters) - BP Amoco (quote from Yahoo! UK & Ireland: BPA.L) and Mobil Corp (NYSE:MOB - news) have reintroduced refinery run cuts of 10-20 percent across their joint European refinery system, blaming poor margins again after crude's recent climb over $18 a barrel, a refining source said on Tuesday. ''We haven't got exact numbers at the moment because some of the assets are sorting out throughputs, but Nerefco (BP Amoco's share only) is running at 85 percent of capacity at present and across the system it ranges between a 10 and 20 percent cut,'' the refining source told Reuters. The new cuts come from a baseline of 95 percent throughput across its refining system. ''There has been no real change in our situation since early in June when we had wholesale cuts across the system. We are still in a pretty similar margin environment,'' the source said. ''Runs were improved slightly at the end of June. That was due to dated weakness but we are now back to where we started.'' He said the Gravenchon refinery in southern France was now up and running after unsheduled repairs and the Lavera refinery, which had seen a scheduled turnaround, was coming back on stream after a couple of days delay to the crude distillation unit. ''We've had two days of products out of it so it's almost back to normal operation,'' he said. In late May, BP Amoco said it had cut runs at nine of its European refineries by 18 percent, totalling 225,000 barrels per day across its system. (Note: this article is ''in progress''; there will likely be an update soon.)