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: Douglas V. Fant who wrote (21830)	5/11/1998 3:22:00 PM
From: pz	Read Replies (1) \| Respond to of 95453

NEW YORK, May 11 (Reuters) - NYMEX crude and refined products held on Monday afternoon to early gains on a bout of fund and local technical buying, traders said. At 1445 EDT/1845 GMT, June crude traded at $15.20 a barrel, up seven cents. In the morning, the front month contract dropped to $14.90, but quickly recovered as buying interest developed, hitting a high of $15.75. June heating oil added 0.34 cent at 43.35 cents a gallon while gasoline rose 0.58 cent at 52.60 cents a gallon. "The market has turned a bit quiet, with trading largely by locals," said a NYMEX floor trader. The day's opening June crude broke below $15.00, following overnight losses in ACCESS trading and the absence of any fresh, positive news from Arab producers meeting in Damascus, Syria, over the weekend. "If at all, the meeting confirmed belief that OPEC members will not act until their regular meeting in June," said another trader. Two weeks ago, Venezuela's Energy Minister, Erwin Arrieta, said the markets needed a cut of about 500,000 barrels per day (bpd) to raise oil prices. A few days later, the oil markets swiftly rose in reaction to the presence in the U.S. of Saudi Arabian Oil Minister Ali Naimi week before last, fueling speculation about a meeting between him and his Venezuelan and Mexican counterparts. No meeting took place and since then the market has received a dose of denials about such a meeting happening soon. But the need for a further output cut was stressed by Qatari Oil Mnister Abdullah al-Attiyah, who on Monday said in Damascus that the oil markets remained very weak. "Qatar is demanding during the consultations in Damascus that a further cut should be made to support prices," Attiyah said. Saudi Arabia, Venezuela and Mexico negotiated the Riyadh pact in March calling for the reduction in oil production by about 1.5 million barrels per day (bpd) beginning April 1 by OPEC and some non-OPEC producers to rescue oil prices. So far, early reports on the April output by OPEC, which agreed to cut production by 1.245 million bpd under the Riyadh pact, show that OPEC producers have cut production by anywhere from 500,000 to 900,000 bpd. Many analysts say, however, that there is still a big surplus of oil globally. One of them, Purvin & Gertz, Inc., the Houston-based energy consultants, said Monday the cuts under the Riyadh pact will not diminish the large overhang in first quarter production, which it estimated at well over 2.0 million bpd. "Second quarter stock increases under the March arrangements will still be excessive, especially with increased Iraqi volumes," it said. It said continued producer reponse to market demand levels "are not likely to be proactive, and the market should remain weak, on average, with the stock overhang remaining for some time," it said.