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: upanddown who wrote (54330)	11/10/1999 6:39:00 AM
From: oilbabe	Read Replies (1) \| Respond to of 95453

Crude Oil Gains as U.S. Fuel Supplies Drop, Global Surplus Ends London, Nov. 10 (Bloomberg) -- Crude oil rose for the third straight day, to its highest level since January 1997, as a drop in inventories signaled output cuts by the world's top exporters have eliminated a global surplus. U.S. supplies of fuels such as heating oil dropped more than expected last week, the American Petroleum Institute said last night, a sign of rising demand ahead of colder winter months. The API figures come after the International Energy Agency said inventories of crude oil in developed countries fell 1.2 million barrels a day in September, reducing the total by 4 percent. ``Crude looks set to gallop on,' said Jack Kellett, a trader at Credit Lyonnais Rouse Ltd. ``There's no shortage of bullish data at the moment.' Crude oil for December settlement rose as much as 22 cents to $24.35 a barrel on the International Petroleum Exchange, its highest price since Jan. 13, 1997. Crude oil for December delivery on the New York Mercantile Exchange was 27 cents higher at $24.30 a barrel in electronic trading. The gain boosted oil companies' shares in Europe. Shell Transport & Trading rose as much as 15 pence, or 3.3 percent, to 477 pence; Elf Aquitaine SA rose as much as 3.6 euros, or 2.5 percent, to 163.2; and BP Amoco gained as much as 18 pence, or 3 percent, to 614 pence. Crude oil has more than doubled oil this year from a 12-year low in December, marking a victory for the Organization of Petroleum Exporting Countries. OPEC, with four other nations, cut about 7 percent of world supply in April from February 1998 levels to boost prices and force refiners to use up stored fuel. The API report showed U.S. supplies of gasoline and distillate fuels fell last week by a combined 7.7 million barrels, more than double the increase of 3.1 million barrels in crude oil inventories. Analysts had predicted a reduction in U.S. fuel supplies of as much as 350,000 barrels. ``The drawdown in fuels was friendly to the market,' said Kevin Blemkin, a broker with Cannon Bridge Corp. Ltd. Available global stockpiles of crude oil and other petroleum products now stand at about 81 days of consumption, down from 86 days at the beginning of the year and their lowest level since late 1997, according to London's Centre for Global Energy Studies, which considers 80 days the normal level. As OPEC has promised to maintain its production cuts at least until the end of March, inventories will continue to drop, reaching about 78 days early next year, CGES said. Still, an end to the cuts next year would likely cause prices to drop. The price of Brent is expected to average $18.16 a barrel in 2000, according to the average estimate of eight analysts polled by Bloomberg News yesterday. While that's 4 percent higher than the $17.47 a barrel average nine analysts forecast in August, it's 25 percent below the current price. U.S. imports of petroleum products fell 568,000 barrels to 1.55 million barrels a day, the API said, the lowest level since June. Tight supplies in Europe have sent the price of Brent futures above those in New York, making it less profitable to export to refiners in the U.S. Brent typically trades at a discount of between $1 and $1.50 a barrel below the higher quality West Texas Intermediate grade traded in New York. Brent this week climbed above New York crude for only the second time in 17 months.