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To: zbyslaw owczarczyk who wrote (2403)	9/19/2000 5:25:49 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 3891

Steve--, re: oil/article. Prospect of further output boost by OPEC calms fears of tight supplies ( read this article, there is to much pressure on OPEC to further boost oils production) If not US is ready to release from strategic reserves, which after 1998( 12 $/ barrel)is at all time high. During summer 1 million barrel a day for 45 days was almost ready to go. 1 million a day is a big number! Oil prices are at speculative level. Went from 33 to 36 based on Saddam and tropical storm. Nothing has happened and we still have 36$. Euro is also at speculative level, and has to go up soon. last week I added ALA, some NT. Bought also TXN and ADI. NEW YORK (CNNfn) - Sizzling oil prices took a breather Tuesday as the prospect of OPEC boosting output helped ease worries about tight supplies. In late trading, U.S. light sweet crude for October delivery fell 33 cents to $36.55 a barrel on the New York Mercantile Exchange. London's benchmark Brent for November delivery settled at $33.63, down 83 cents. On Monday, U.S. crude oil futures hit an intraday high of $37.15 a barrel, their highest since the Gulf War of 1990-1991. Various remarks from government officials as well as OPEC members soothed consumers' concerns. U.S. Energy Secretary Bill Richardson said Tuesday that oil prices that are currently approaching $38 a barrel are "dangerously high" and the White House would not hesitate to use all options to fight soaring energy prices. Richardson declined to say if the release of oil from the nation's Strategic Petroleum Reserve was imminent. He spoke to reporters after meeting with Northeast lawmakers. Richardson reiterated that all options were on the table to protect Americans from rising energy prices, but would not say if current market conditions made it more likely that the emergency stockpile of oil would be tapped. Richardson met privately at the Capitol with lawmakers, who during the meeting urged the administration to release oil from the Strategic Petroleum Reserve as soon as possible to prevent a spike in home heating oil prices this winter. Lukman sees prices falling OPEC Secretary General Rilwanu Lukman said Tuesday he expects surging oil prices to fall very soon, reiterating that the cartel would pump more crude if necessary. "We've had some forceful statements from within OPEC," said Matthew Warburton, oil analyst at UBS Warburg. "The possibility of OPEC releasing further oil in October under the price band mechanism prompted a degree of profit taking this morning." Fears of a supply crunch are particularly acute in the United States, the world's biggest oil consumer, where heating oil stocks are running 40 percent below last year. Consuming countries, fearful that higher energy costs could revive inflation and slow economic growth, have been calling on OPEC to release yet more supplies to knock down stubbornly high oil prices. Lukman said OPEC would not hesitate to respond if prices -- which have been hitting 10-year highs at $37 per barrel -- do not ease before the cartel's meeting in November. "We expect prices to go down very soon," Lukman told Reuters on his arrival in the Indonesian capital of Jakarta, where he will attend an oil conference. "If prices remain high, we don't need a meeting, we won't wait for the meeting. We'll act. We've agreed that if prices remain above that level [$22-$28] for the number of days we have stipulated, more oil would be made available," he said. Saudi Arabian Oil Minister Ali al-Naimi already has said further supply could be added before OPEC's scheduled November ministerial meeting if sky-high prices made it necessary. OPEC can add more oil under its price stability mechanism, which would bring an extra 500,000 barrels per day (bpd) if prices continue above $28 for 20 consecutive working days after Oct. 1. Lukman added he backs al-Naimi's view that $25 per barrel is a fair price. He declined to predict what direction prices will head, but added that some extra oil already is seeping into the market. OPEC had about two million bpd spare capacity, Lukman added. OPEC agreed Sept. 10 to raise production by 800,000 bpd, its third output rise this year. While the hike has failed to contain prices, al-Naimi has said that crude oil supplies now are ample and that stocks would build. Prices have increased recently as rising tensions between Baghdad and Washington fueled traders' fears that Iraq could shut off its crucial oil supplies this winter in the run-up to November's U.S. presidential election. --Reuters contributed to this report