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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Paul Kern who wrote (103261)	6/19/2008 10:11:19 AM
From: Paul Kern	Respond to of 206099

By Tatyana Shumsky Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Crude slid in morning trading on reports that China is raising diesel and gasoline prices. Light, sweet crude for July delivery recently traded $2.52, or 1.8%, lower at $134.16 on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $2.52 lower at $133.92 a gallon. China will increase fuel prices on Friday, according to a Chinese news service. While most of China's neighbors have reduced subsidies in the last few weeks, China was seen as capable of weathering the recent upswing in energy costs without raising prices. Higher prices are seen reducing consumption, which would be especially worrisome in the giant Chinese market, traders said. "This is enough to scare the market," said Ray Carbone, president of Paramount Options. "This is not what people who are long want to hear." The sudden uncertainty about Chinese demand comes as market participants expect Saudi Arabia to announce an increase in production on Sunday. Such a move would add new supplies of lower-quality oil to the market, potentially at a discount. China's move overshadowed the shutdown of 225,000 barrels a day of production in Nigeria, following a militant attack on an offshore oil installation Thursday. "If this is going to last a while and really put a dent in supply the market will react accordingly," said Matt Zeman, with Lasalle Futures. Front-month July reformulated gasoline blendstock, or RBOB, traded 8.06 cents, or 2.3%, lower at $3.3861 a gallon. July heating oil fell 8.31 cents, or 2.2%, to trade at $3.7769 a gallon. -By Tatyana Shumsky, Dow Jones Newswires; 201-938-4424; tatyana.shumsky@dowjones.com. (END) Dow Jones Newswires June 19, 2008 10:08 ET (14:08 GMT)