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

To: drsvelte who wrote (24232)	6/16/1998 8:57:00 PM
From: iandiareii	Respond to of 95453

Re: 1.2 MBD. Well...maybe, but maybe not. And, as always, note the conflicting takes on the efficacy of this purported cut. ---- June 16, 1998 Crude Futures Move Higher After Six Straight Declines An INTERACTIVE JOURNAL News Roundup A bout of profit-taking by bears sent the July crude oil contract higher Tuesday after six days of losses at the New York Mercantile Exchange. Heavier gains were shaved, though, as Arab oil ministers failed to markedly improve plans for a second round of oil output cuts. Crude oil for July delivery rose 42 cents to $11.98 a barrel on the New York Mercantile Exchange. The contract hit a high of $12.35 a barrel in early trading, but dipped back below $12 shortly after midday as traders reacted to a package of production cuts that was hammered out at a meeting of Gulf Cooperation Council in Riyadh, Saudi Arabia. Oil ministers attending the meeting from the United Arab Emirates and Kuwait said their countries will each cut output by 75,000 barrels a day, while Oman said it will cut 20,000 barrels a day, but the news didn't impress market analysts. The output pledges added only 170,000 barrels a day to the 590,000 barrels a day in cuts agreed to by Saudi Arabia, Venezuela, Qatar, Iran, and non-OPEC Mexico over the last two weeks. Kuwait's oil minister Sheik Saud Nasser Al-Sabah, who attended the meeting, said he expects total pledges this time around to reach 1.2 million barrels a day by the time OPEC meets next week in Vienna, a figure most analysts agree will allow oil futures to mount a sustained recovery. Mr. Al-Sabah expects Algeria, Nigeria, Libya and, surprisingly, Indonesia, which said earlier Tuesday that it couldn't afford to make any additional cuts in output, to pony up the next 460,000 barrels a day in cuts. Analysts were underwhelmed. "Instead of keeping quiet about the exact amount of the pledges, oil producers came out with figures that are still short of market expectations," said Tom Bentz, an energy analyst with Cresvale International, a New York-based broker. Meanwhile, July gasoline added 0.99 cent to 45.93 cents a gallon, and July heating oil rose 0.27 cent to 36.97 cents a gallon. interactive.wsj.com