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To: bw who wrote (23710)	6/9/1998 3:49:00 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

IEA was one of the reports I heard this a.m. ...with stalwarts like GLBL and CXIPY down substantially today - it looks like some funds are exiting even the quality companies. That damn Noesis graph that called for $12 oil 8 weeks ago is looking very ominous right now... I'm overall comfortable where I have bought most oil stocks. I will make once last moderate entry to lower my cost basis on core holds EVI, CDG, FLC, FGII on any dips and perhaps into TCMS and BDI as long term holds as well. I only now am realizing the ''true nature'' of long term holds... as we may be looking at a very flat 6-9-12 months before supplies diminish enough to satisfy the market - OPEC has one last chance... However; even with $12 oil; I'm not selling a single share; time to ''sit in the pocket''...

To: bw who wrote (23710)	6/9/1998 7:57:00 PM
From: Czechsinthemail	Respond to of 95453

6/9/98 Government Report Sees Less Demand, Low Prices For Gasoline NEW YORK -(Dow Jones)- The latest outlook from the statistical wing of the Department of Energy said gasoline demand this summer won't be as strong as had been anticipated and the prices consumers pay for gas should remain low as a result of ample supplies. The Energy Information Administration lowered its forecast for summer gasoline demand because "latest data ... suggests more moderate growth this year than previously anticipated. Meanwhile, gasoline stocks have also moved to a more plentiful level." EIA repeated its forecast that "in real terms (adjusted for inflation), annual average retail motor gasoline prices are expected to be at their lowest levels ever this year. "With ample gasoline inventories, and assuming continued moderate crude oil prices, we now expect average retail gasoline prices to be about 15 cents per gallon lower during this season than for the same period in 1997," EIA said. EIA now expects summer gasoline demand to average 8.36 million barrels a day or 60,000 b/d less than the May forecast of 8.42 million b/d. In the 1997 summer period, demand averaged 8.19 million b/d. The figures translate to summer-demand growth of just 2.1%, compared with 2.9% forecast earlier. "While we still see much stronger annual growth in gasoline demand this year than was evident in 1997 (2.4% compared to 1.5%), current indications are that we will not likely see growth reaching the 2.9 to 3% range of previous forecasts," EIA said. EIA said its forecasts take into account output cuts of some 1.945 million barrels pledged by members and nonmembers of the Organization of Petroleum Exporting, including the 450,000 b/d in collective cuts announced by Saudi Arabia, Venezuela and Mexico last week. The forecast also assumes about 1.6 million b/d of exports by Iraq under the next phase of the U.N. oil-for-food plan. Meanwhile, EIA said inventories of natural gas "ballooned to new highs in May ... diluting the chances for much of a wellhead price recovery this summer when utility demand is expected to pick up." Natural gas wellhead prices were revised down to $2.10 per thousand cubic feet for 1998 from the May forecast of $2.15. The 1997 average was $2.23. Second-quarter price forecasts were cut by 10 cents, while third quarter forecasts were cut by eight cents. "Gas demand is generally expected to be lower than previous projections, mainly because of continued weakness in industrial demand," EIA said. EIA expects a demand drop of 1.1%, or about 240 billion cubic feet in 1998, but expects a "mammoth" rise of 5.3% in 1999, when prices are expected to average $2.21.