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To: Think4Yourself who wrote (69433)	7/11/2000 12:49:38 PM
From: The Ox	Read Replies (1) \| Respond to of 95453

Updated Tue Jul 11 12:29 ET NYMEX Oil: Crude mixed, bounces on reports OPEC hike uncertain By Peter Rosenthal, BridgeNews New York--July 11--Crude oil futures were mixed Tuesday, but bounced off lows at midday on reports that Saudi Arabia's push to increase production again may not be receiving support from other OPEC members and therefore may not come to fruition, brokers said. At 1200 ET, Aug crude was down 19 cents at $29.50 a barrel, but rose as high as $29.79 on the news. Brent crude on London's IPE was last up 5c at $28.90. * * * However, a late report suggested the Saudis and other major producers are still on track to increase output by 500,000 barrels per day to push prices back toward $25 per barrel. A senior source with a country believed to be reluctant to increase output told BridgeNews earlier Tuesday that there is no immediate need for OPEC to increase oil production, since prices are moving toward an "acceptable range." Another news wire later quoted several OPEC sources saying the increase is now unlikely because there is a lack of consensus among members of the organization. "Obviously the belief (based on the subsequent story) is that they're on track," a broker said. Venezuela Oil Minister Ali Rodriguez, on a tour of OPEC nations, will be in Kuwait later Tuesday and is expected to visit Riyadh Wednesday for talks with Saudi officials, a meeting that should yield further news on whether OPEC will increase output again. The organization agreed June 21 to raise output 708,000 bpd, the second production rise this year, but prices actually went higher, surprising some OPEC ministers. Oil markets have remained tight, particularly in gasoline and distillate fuel, despite rising crude production. The International Energy Agency, warned Tuesday in its monthly market report that more refined products were needed, "and soon," if prices are too fall. "Refiners do not really believe today's prices are sustainable, and hesitate to run crude for product restocking, but product stocks are already unacceptably low because of similar uncertainties earlier in the year and today's supply obligations must be met," the report said. End

To: Think4Yourself who wrote (69433)	7/11/2000 12:54:53 PM
From: The Ox	Read Replies (1) \| Respond to of 95453

IEA Warns of Winter Heating Oil Crunch in the West LONDON, July 11 (Reuters) - Oil refiners in the West may be struggling with low gasoline stocks but the situation could be even worse this winter for inventories of heating oil and diesel, the International Energy Agency warned on Tuesday. In its monthly Oil Market Report the IEA said that refiners obliged to maximise gasoline supply in the United States and Europe were allowing a growing deficit in the distillates stocks that make up heating oil and diesel. "The situation ... warrants serious attention. Because of low gasoline stock levels in the U.S. and Europe, refiners are maximising gasoline production at the expense of heating oil," the Paris-based agency said. "If gasoline production were maximised on both sides of the Atlantic, further erosion of gasoline stocks could be prevented. But the distillate gaps would widen." The deficit in distillates stocks in Europe could deepen versus last year from 47 million barrels in the second quarter to 58 million barrels in the fourth quarter, the IEA said. In the U.S. the deficit could widen from 28 million barrels to 57 million barrels. "It's not just in the U.S., Europe will also suffer," said David Knapp, the head of IEA's oil market division. Heating oil stocks last year were the lowest in a decade. While the outlook for crude oil stocks looks more comfortable, particularly if Saudi Arabia soon adds more supply, the IEA's data for inventory builds during the second quarter for industrialised countries shows a heavy downward revision. The agency's estimate for stockbuilds of crude and products in the OECD during April was revised down by one million barrels daily to just 700,000 bpd. It now estimates a 1.7 million bpd OECD build during May compared to a forecast last month of three million bpd. The IEA said it recorded an abrupt turnaround in oil products consumption in OECD markets in May after declines in previous months. But after two months of downward revisions, the agency left unchanged its projection for world oil demand this year at 76.2 million bpd, up from 74.9 million bpd in 1999.