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To: waverider who wrote (20573)	4/27/1998 5:20:00 PM
From: pz	Respond to of 95453

NEW YORK, April 27 (Reuters) - A call for further oil output cuts by Venezuela sparked a rise in NYMEX crude oil futures Monday, but traders raised the usual caveats, deflating the impact of the news on the market. NYMEX June crude gained 23 cents, settling at $15.32 on the news and on other supportive developments as well, rebounding from Friday's close at $15.09 as oil glut worries heightened again. "We still have to see evidence of any cuts that producers made under the Riyadh agreement and until then this talk about new cuts is just that -- talk," said a wary NYMEX trader. Crude oil appeared ready to retest fresh lows in the early morning after opening at $15.08, a cent off Friday's close. It later hit a low of $14.95 on the day on some technical selling. "There were paper and fund buying that came in and that boosted prices," said the NYMEX trader. Gasoline, which had been advancing on continuing problems in U.S. refineries amid forecasts of a big demand in the coming driving season until Friday, when it petered out, also rose. May gasoline added 0.84 cent at 50.94 cents a gallon, ahead of Tuesday's release of weekly stock inventory data from the American Petroleum Institute. Market watchers making early estimates said they see a drop in gasoline inventories in the API data. May heating oil followed the market's rise, closing up 0.18 cent at 43.08 cents a gallon. In London, IPE June Brent closed at a session high of $14.25 a barrel, up 31 cents on the day, on Venezuelan Oil Minister Erwin Arrieta's call for a further reduction of 500,000 barrels per day (bpd). Arrieta's statement from Caracas followed reports over the weekend that the United Arab Emirates, Kuwait and Qatar would support any output reduction if it was needed. OPEC President Obeid bin Saif al-Nasseri, who is UAE's oil minister, said that the 11-member cartel would consider further output cuts if prices remained low and provided non-OPEC producers were willing to reduce supplies. Traders were again puzzled, however, when Luis Giusti, Venezuela's state oil company, Petroleos de Venezuela, said in New York that further oil production cuts by major producers were not yet needed. Giusti said Venezuela was not planning to make any additional output reductions. He said he hadn't heard of Arrieta's comments. Giusti is in New York to present to investors an upcoming $1.5 billion bond issue by Venezuela. Traders said Venezuela appears to be raising hopes again, much as it did in March. They were referring to Venezuela's statement about mid-March, after NYMEX crude hit a nine-year low of $12.80, that there was a possibility of OPEC and non-OPEC producers agreeing to cut production as a way to lift oil prices. Secretive talks took place afterward, leading to the Riyadh agreement of March 22 spearheaded by Venezuela, OPEC kingpin Saudi Arabia and non-OPEC member Mexico. In the agreement, which was confirmed in Vienna at an OPEC meeting the following week, OPEC and non-OPEC producers pledged to cut production by about 1.5 million bpd. On other developments, traders watched for developments about the U.N. Security Council's review of sanctions against Iraq, which started early in the day Monday. At the all-day review Monday, the U.S. acknowledged for the first time that Iraq had made progress on nuclear weapons and in its cooperation with U.N. arms inspectors but said it was premature to lift sanctions. U.S. Ambassador Bill Richardson spoke to reporters after China called for a closing of the nuclear weapons file and for sanctions to end as soon as possible because U.N. arms experts had found little evidence of forbidden materials. The Security Council held the all-day review of Iraqi sanctions, the first in nearly a year. The reviews, usually very 60 days, were suspended last June after Iraq interfered with arms inspectors. Richardson said that "based on the reports we have received, there is little sentiment to lift sanctions." The sanctions were imposed on Iraq shortly after it invaded Kuwait in 1990.

To: waverider who wrote (20573)	4/27/1998 8:03:00 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

Diamond: Given our group's area of interest, I vote for Guiness because of its remarkable resemblance to West Texas Intermediate. Those oil patch guys sucking on Lone Stars gonna be switching once they get a taste of that stuff. Its an acquired taste but definitely grows on you. To further belabor this topic, anybody have an opinion on KEG ? Its in-line earnings this AM (up 100 % +) were greeted with a collective yawn though it did hold steady the rest of the day. Its rated #1 of 35 in the Yahoo oil-service group (all strong buys) and it is showing huge growth in both revenue and income....also moving towards an NG concentration. John