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

To: Tommaso who wrote (72314)	9/5/2000 12:31:37 PM
From: The Ox	Read Replies (1) \| Respond to of 95453

Updated Tue Sep 5 09:26 ET NYMEX Oil Pre-opg: Higher as OPEC output boost seen too small OPENING CALL: Crude oil: Up 60 cents per barrel Heating oil: Up 200-225 points per gallon Gasoline: Up 200-225 points per gallon By Gelu Sulugiuc, BridgeNews New York--Sept. 5--NYMEX crude oil futures are expected to open sharply higher Tuesday as traders consider the expected 500,000-barrel-per-day OPEC output increase as insufficient to balance demand and subdue prices. * * * IPE's Brent gained more than $1 since Friday to reach a 10-year high at $32.88 per barrel earlier Tuesday as OPEC sources talked of output increases of between 500,000 bpd and 700,000 bpd. The Oct WTI contract ended the overnight Access session in New York at $34.00 per barrel, up 62c. "The expectations are that OPEC will increase output by only 500,000 barrels a day, and that's not going to be enough," a broker said. "Plus a number of countries (within OPEC) oppose the increase, among which are at least Iran and Indonesia." Brokers said that market momentum was still on the upside and predicted that the heating oil contract could get an additional boost with the cooling temperatures in the northeast. "The market is still bullish, we could touch $34.37," the 10-year high set in March, a broker said. Meanwhile, OPEC may raise its current oil production by 700,000 barrels per day when the cartel's oil ministers meet in Vienna on Sunday, the London-based Arabic daily Al-Hayat reported Tuesday, quoting a "ranking" OPEC source. This would bring to 1 million bpd the total output hike that should be adopted by OPEC ministers to cool soaring prices, taking into account Saudi Arabia's unilateral hike of 300,000 bpd last month, the source said. (Story. 11809) Saudi Crown Prince Abdullah will renew a call for lower oil prices and the Kingdom's pledge to harness its substantial extra crude production capacity to meet market needs in a policy speech later Tuesday in New York, knowledgeable sources said. Riyadh perceived the existing OPEC oil price band mechanism as a hindrance to needed action and would propose a more flexible arrangement at OPEC meeting next week, they said. (Story .15339) Venezuelan Energy and Mines Minister and OPEC President Ali Rodriguez said Monday that OPEC member nations will automatically increase crude oil output by 500,000 barrels per day if the OPEC basket of crudes remains above $28 per barrel for more than 20 consecutive trading days, as stipulated under the OPEC price band. (Story .13582) The daily price of OPEC's basket of seven crudes rose to $32.13 per barrel Monday, up 40c from Friday's $31.73, the OPEC News Agency reported Tuesday. The OPEC basket comprises Algeria's Saharan Blend, Indonesia's Minas, Nigeria's Bonny Light, Saudi Arabian Light, Dubai of the United Arab Emirates, Venezuela's Tia Juana and Mexico's Isthmus crudes. Oct heating oil futures ended the Access session up 216 points at 99.80 cents per gallon, while Oct gasoline futures ended up 215 points at 98.00c per gallon. At 0913 ET, IPE's Brent Oct futures were down 14c at $32.70 per barrel. End UPCOMING: --NYMEX Oct crude futures expire Sept. 20, Oct options Sept. 15. IPE Oct crude futures expire Sept. 14; Oct options Sept. 11. NYMEX Oct product futures expire Sept. 29, Oct product options Sept. 26. --American Petroleum Institute inventory data are due out after 1600 ET Wednesday; U.S. Department of Energy after 0900 ET Thursday, both delayed 24 hours due to the Labor Day holiday. --OPEC's next formal ministerial meeting is Sept. 10. Heads of state meet Sept. 27 and 28 in Caracas to commemorate OPEC's 40th anniversary. IN THE NEWS: Story Number Headline ------ -------- .11809 UK Press: OPEC source sees 700,000-bpd output hike necessary .13582 Venezuela Press: Rodriguez: OPEC band action will be automatic .16081 Mexico crude export projections indicate hike before year-end .14279 High oil prices seen boosting GCC, Arab economic growth .15339 OPEC: Saudis to renew call for lower oil price Tuesday