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: The Ox who wrote (75025)	9/29/2000 1:15:43 AM
From: The Ox	Read Replies (1) \| Respond to of 95453

Sep. 28-MAR-- [B] NYMEX Oil Review: Crude falls 3.7% as Saudis willing to hike output By Gelu Sulugiuc, BridgeNews New York--Sept. 28--NYMEX crude oil futures settled down $1.12, or 3.7%, at $30.34 per barrel after steady falling throughout the session amid comments suggesting that Saudi Arabia is ready to pump more crude onto the world oil market if needed to stabilize prices. IPE's Brent settled down $1.28 at $29.26 per barrel. * * * NYMEX Oct heating oil settled down 374 points at 91.06c per gallon, while Oct gasoline ended down 538 points, or 5.9%, at 86.74c per gallon. Gasoline futures have been falling hard ever since the American Petroleum Association reported Tuesday that stocks increased 2.9 million barrels last week amid higher domestic production and imports. Saudi Arabia's foreign minister and the head of its Supreme Petroleum Council reiterated Thursday that the kingdom stood ready to play its role in countering any world crude oil shortages. Prince Saud al-Faisal, however, told BridgeNews that it does not mean his country was assuming the role of a swing producer, adding "there are no swing producers in OPEC." (Story .19298) "It seems like the Saudis are just trying to put a little pull on the market," a broker said. "This just comes out at a time when the market is particularly vulnerable." The market failed to close the gap between $32.20 and $32.50 and even failed to remain above $32.00 Wednesday. Another broker confirmed the market's weakness after the Saudi comments. "Finally the technicals gave up the ghost and broke through support at $30.85," he said. The market also broke through the next levels of support at $30.60 and $30.40. OUTLOOK: Observers expect the market to be quiet Friday, chopping around in a small range. "There will likely be some short covering ahead of the weekend at some point during the day, but there's room for further weakness," a trader said. "We're still under some pressure coming from all the recent news," a broker said. "This is the long-overdue correction that people have been waiting for. Where the bottom is, it's hard to say." Traders will also keep an eye on Iraq's reaction to the U.N. Compensation Commission's decision today to approve Kuwait Petroleum Company's claim of $15.9 billion in reparations for damage during the Gulf War. Traders reported some short covering Thursday near the $30.60 level immediately after Iraqi officials said they would hold a news conference Friday in Caracas, but the market resumed its fall shortly afterward. Any sign that Iraq might cut its exports in protest to the commission's decision would significantly boost the market, but most traders said they did not expect Iraq to make such a move. Iraq has argued the claim is exaggerated, but the U.N. Security Council reached a deal Wednesday that allowed the Compensation Commission to approve Kuwait's claim. The Security Council decided to reduce the portion of oil proceeds that Iraq will have to pour into the compensation fund between December and June to 25% from the current 30%. That is about $1 billion a year, according to French diplomats. End IN THE NEWS Story Number Headline ------ -------- .19298 OPEC SUMMIT: Saudi reiterates readiness to counter crude shortages .23044 OPEC SUMMIT: Draft declaration commits to secure oil supply .23170 OPEC SUMMIT: Chavez suggests OPEC consider call to lift Iraq sanctions .22438 UK Press: Naimi: Saudis capable of 1-1.5 mln bpd output hike in 30 days .12896 UK oil analysts see little benefit releasing EU oil reserves .20147 Mexico's Tellez sees crude prices stabilizing at about $30/bbl .18371 OPEC SUMMIT: Rodriguez: EU oil release could make prices fall sharply .18095 US EPA seeks to relax laws on Northeast heating oil sulfur content 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. --OPEC's heads of state meet Sept. 27 and 28 in Caracas to commemorate OPEC's 40th anniversary.