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

To: Heretic who wrote (67812)	6/7/2000 1:42:00 PM
From: The Ox	Read Replies (1) \| Respond to of 95453

Updated Wed Jun 7 11:31 ET NYMEX Oil: Crude drops awaiting OPEC price trigger By Peter Rosenthal, BridgeNews New York--June 7--NYMEX crude oil futures fell sharply as the market awaited word on whether OPEC's price band will trigger an output increase as early as Thursday. Also, data showing product stocks rose last week has led traders to take profits. At 1131 ET, Jly crude was down 50c at $29.25 per barrel. Jly gasoline was down 113 points to 97.70c a gallon, while Jly heating oil was down 154 points to 73.80c. * * * Brent crude on London's IPE dropped below its recent $28.20-29.52 per barrel trading range Wednesday, and broke through psychological support at $28.00 per barrel. OPEC is expected to announce a production increase of 500,000 barrels per day if the 20-day average of the OPEC price basket exceeds $28.00. OPEC ministers are currently discussing any potential action related to the price band, Venezuelan oil minister and current OPEC president Ali Rodriguez said Wednesday. Rodriguez said he expects a decision later Wednesday, when the 20-day average of the OPEC basket may exceed the $28.00 collar. "Last night and today, I communicated with all the ministers to get their opinion," Rodriguez said. "As you know all decisions taken by OPEC must be unanimous...I expect a decision today." With the OPEC basket average now at $27.98, oil prices would have to decline more than $1.37 a barrel to prevent the top of the price band from being pierced, an analyst said. Wednesday's decline comes despite data showing domestic crude stocks rose at least 4 million barrels last week. However, the Department of Energy and American Petroleum Institute both also reported inventories of gasoline increased, allaying some fears of a shortage as the summer driving season gets underway. End