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: excardog who wrote (80228)	11/28/2000 4:29:00 PM
From: excardog	Respond to of 95453

futures comments: By Peter Rosenthal, BridgeNews New York--Nov. 28--Crude and heating oil futures plunged Tuesday in New York on forecasts for continued mild weather in the northern U.S. and comments from Iraq indicating oil supplies will not be interrupted next month. Jan crude settled down $1.16 at $34.22 per barrel, Dec heating oil fell 615 points to $1.0237 a gallon. Jan Brent on London's IPE settled down 87 cents at $32.19. * * * NYMEX Dec gasoline settled down 268 points at 87.91 cents a gallon. "We have no intention of interrupting any supplies," Iraqi Oil Minister Amer Rashid said Tuesday. The rejection by the U.N. of Iraq's crude price formula for December had renewed concern about whether Baghdad would halt exports from Friday. Despite Rashid's comments and indications from diplomats that they would allow oil loadings to continue beyond the end of the current phase of the oil-for-food program next Tuesday, traders are still worried that the price formula dispute will lead to a gap in oil loadings. Many though took solace in Rashid's remarks to reporters on a visit to India. "Most people anticipated that once it was clear the U.N. was going to draw a line in the sand (on the price formula, Iraq would back off)," said Mike Rothman, analyst at Merrill Lynch. "Rashid's comment today pretty much catalyzed that sentiment." However, Rashid also said his country would defend the price formula, which is set low to enable customers to pay a 50-cents per barrel premium directly into an account outside U.N. control, in violation of sanctions. Customers have balked at the request and the U.N. rejected the formula on the basis that it did not represent fair market value. Meanwhile forecasts for moderate temperatures to continue in the key Northeast consuming region over the next several weeks led to heavy selling of heating oil futures. Warm weather in continental Europe and liquidation of expiring December natural gas contracts also pressured the market. Dec natural gas settled down 35.2 cents at $6.016 per million British thermal units. BridgeNews Global Weather Services forecast Tuesday that weather pattern changes and a general absence of truly cold North American air will restrict the occurrence of cold in the Northeast over the next couple of weeks. Also adding weight to the heating oil market was a report that a vessel which has not been allowed to previously transport cargo between U.S. ports has been granted a waiver to do so. Although the vessel is U.S. flagged and needed the waiver only because it operated under a prior subsidy program, there is fear that the U.S. will extend waivers to non-U.S. vessels, which are prohibited by the Jones Act from moving cargo between domestic ports. OUTLOOK: Inventory data from the American Petroleum Institute and Department of Energy will drive trading Wednesday, with brokers and analysts expecting decreases in stocks of crude, gasoline and distillate fuel. Jan crude may find support at Tuesday's $34.19 low, its lowest level in two weeks, with resistance at $35.00. End