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

To: Big Dog who wrote (14483)	3/11/1998 3:04:00 PM
From: Czechsinthemail	Respond to of 95453

Major oil companies can go both ways in their futures hedging, selling to hedge future production or buying to hedge product needs. Also, since they can trade in and out of these hedged positions, they may make adjustments around developing news like everyone else. Producing countries that sell crude but aren't in refining and marketing (like Venezuela) would seem to be the more likely culprits for forward selling through the futures markets. Baird

To: Big Dog who wrote (14483)	3/11/1998 3:30:00 PM
From: dougjn	Respond to of 95453

Big Dog, isn't that what is called "whistling past the graveyard"? The following is all quoted: LONDON, March 11 (Reuters) - Ailing oil prices were in remission on Wednesday thanks to supportive U.S. industry stock figures, but the market's overall diagnosis remained poor. ******** Venezuela last month pumped 30 percent above its agreed quota of 2.6 million barrels per day and has rejected calls by Saudi Arabia and others for restraint. The kingdom, angered by its fellow OPEC founder member, on Sunday said it would not act alone to support oil prices and signalled it was prepared for a long struggle to retain its market share. Washington-based consultants The Petroleum Finance Company described OPEC as paralysed by the battle of wills between the two producers and said prices would need to fall further to soften entrenched positions. Further pain is in prospect later in 1998 when a United Nations plan to more than double the value of its "oil-for-food" deal with Iraq will see several hundred thousand barrels of extra oil inundating markets. The deal to raise the export ceiling to $5.2 billion every six months from $2 billion will start when an aid distribution plan being negotiated in New York is agreed. Prices in dollars per barrel: March 11 March 10 (1315 gmt) (close) IPE April Brent 13.19 12.98 NYMEX April light crude 14.24 14.24