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

To: Broken_Clock who wrote (24372)	6/18/1998 7:58:00 PM
From: pz	Read Replies (1) \| Respond to of 95453

Thursday June 18, 5:38 pm Eastern Time Crude Continues Slide After Rally by The Associated Press Crude oil futures on Thursday gave up gains made a day earlier on the New York Mercantile Exchange as investors rushed to dump their positions rather than take possession next week of ample U.S. supplies because storage space is scarce. On other markets, cotton futures rallied on hot weather worries. Crude on Wednesday saw heavy buying in the wake of the American Petroleum Institute's report that inventories fell an unexpectedly heavy 1.135 million barrels last week to 344.469 million barrels. Unleaded gasoline inventories also fell, down 41,000 barrels to 217.736 million barrels -- an indication that the crude decline did not come from the production of gasoline. But investors taking stock of the situation on Thursday noted inventories around the country still are sharply higher than a year ago and noted that supplies in the important Cushing, Okla., delivery point remain ample. With the active July contract expiring late Monday, market participants rushed to shed their holdings rather than take delivery of physical supplies and with them, the headache of figuring out where to store them. Futures prices have plunged in the last few months upon a contract's expiration, a reminder of the ample supplies on hand. There also is widespread skepticism that oil producers who pledged in March to cut a total 1.72 million barrels a day from the market actually met that target. Kuwait, the United Arab Emirates and Oman, members of the Gulf Cooperation Council, on Tuesday announced a second round of cuts that raised total reductions pledged by members of the Organization of Petroleum Exporting Countries and other producers to about 800,000 barrels a day. Analysts have said exporters must cut another 1.5 million barrels a day from the market to overcome weak demand from economically depressed Asia. Investors say the next important litmus of world oil producers' resolve will come next week, at OPEC's meeting in Vienna. Crude for July delivery fell 83 cents to $11.77 a barrel; July heating oil fell .41 cent to 36.91 cents a gallon; July unleaded gasoline fell .67 cent to 45.84 cents a gallon July natural gas fell 3 cents to $2.144 for each 1,000 cubic feet. Cotton futures rose nearly 2 percent as hot, dry weather in Texas growing regions threatened developing crops there. Drought in Texas's Rio Grande region may cost growers of cotton and grains some $517 million, according to estimates from the state Agricultural Extension Service. Poor growing weather has played havoc with crops in Texas and California, threatening to reduce what already was expected to be one of the smallest crops in years at a time of rising demand. The U.S. Agriculture Department on Thursday reported in its weekly export sales data that shipments had risen by 4 percent over the previous week, putting exporters 90 percent on target for sales of 7.35 million bales at 480 pounds each in the marketing year ending July 31. July cotton rose 1.19 cents to 74.50 cents a pound on the New York Cotton Exchange.

To: Broken_Clock who wrote (24372)	6/18/1998 8:07:00 PM
From: pz	Read Replies (3) \| Respond to of 95453

Thursday June 18, 7:55 pm Eastern Time Company Press Release SOURCE: Superior Energy Services, Inc. Superior Responds to Stock Activity HARVEY, La., June 18 /PRNewswire/ -- Superior Energy Services, Inc. (Nasdaq: SESI - news) today issued the following: Noting the recent downward movement of the Company's stock, Terence E. Hall, President and Chief Executive Officer, attributed the movement to several recently issued analysts' reports that lowered earnings estimates for the Company that such analysts had previously published. While noting the reduced estimates, Mr. Hall reiterated that it has not been the Company's practice to comment on analysts' reports or recommendations or to announce estimates of the Company's future earnings, and that the Company is not prepared to change that practice at this time. Mr. Hall also noted that the Company's business is not immune to industry- wide events, including the recent drop in oil prices, and any resulting softness in the demand for services from oilfield services companies by the major and independent oil and gas companies active in the Gulf of Mexico. The Company has not experienced any significant decline in its business. Management believes that the Company should not be more adversely impacted than other similarly situated service providers and that its fundamental business remains strong. Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of specialized oilfield equipment, oil and gas well plug and abandonment services, electric and mechanical wireline services, the manufacture, sale and rental of drilling instrumentation and the manufacture and sale of oil spill containment equipment. SOURCE: Superior Energy Services, Inc.

To: Broken_Clock who wrote (24372)	6/18/1998 8:46:00 PM
From: Czechsinthemail	Respond to of 95453

6/18/98 Weak Oil Prices Seen Undercutting U.N.-Iraq 'Oil-For-Food' Plan UNITED NATIONS -(Dow Jones)- Market forces that have battered crude oil prices could have a devastating impact on the expanded United Nations-Iraq "oil-for-food" program, U.N. officials said. Baghdad's new, U.N.-approved aid-distribution plan anticipates approximately $4.5 billion in total oil revenue over the 180-day phase that began May 30, with $3.1 billion earmarked for humanitarian aid. However, assuming a price of $10 per barrel and sustainable exports of 1.6 million barrels per day, Iraq will generate only $2.88 billion over six months. That is an increase of only $740 million over revenue realized in previous oil-for-food phases, and falls short of the additional $1.78 billion needed to fund the new aid plan. Even the delivery of $300 million worth of spare parts for Iraq's dilapidated oil infrastructure, the subject of a hotly debated U.N. Security Council resolution introduced Wednesday, is unlikely to significantly boost Iraqi exports over the next six months, industry analysts said. U.N. officials doubt the oil-for-food program can be implemented as planned, but have yet to confront how or where to cut in the event of a shortfall. "There is a concern that the plan may not implemented fully because of a possible shortfall in oil revenue," said a U.N. source. "We have to do our best under the present circumstances because we are not able to dictate oil revenues." Baghdad, which has characterized the oil-for-food program as a means to justify crippling U.N. economic sanctions on Iraq, has already stepped up criticism of the expanded program. In a statement released earlier this week, the Iraqi Foreign Ministry said the fourth phase of the program, "... will not be better than the previous phases, taking into consideration the sharp and continuous decline in oil prices." The statement, issued to back up Baghdad's threat to withdraw from the program if the council passes the spare-parts resolution with conditions considered onerous by Iraqi leaders, concludes that the program "...has failed in addressing the nutritional and health situation of the people of Iraq." In February, U.N. chief Kofi Annan raised Iraq's export ceiling from $2.14 billion over six months to $5.26 billion over six months. Under the program, Iraq is allowed to export limited amounts of oil for humanitarian relief around U.N. trade sanctions imposed in 1990 following the invasion of Kuwait. Annan acted to "prevent further deterioration of humanitarian conditions," affecting Iraqis living under the U.N.'s oil embargo. Initially, Baghdad said it could pump only $4 billion of oil over that time. Negotiations led to a distribution plan that earmarks $3.1 billion for humanitarian aid. That total anticipates $4.5 billion in oil revenue over six months since 34% of every oil-for-food dollar goes to a compensation fund for Gulf War victims and to cover program expenses. Iraq can sustain exports at about 1.6 million barrels per day, according to industry experts. This could be raised to 1.8 million or 1.9 million barrels a day by the end of the year if the spare parts are delivered, according to one analyst. However, even that increase won't bring oil revenue close to the target without a dramatic increase in prices, sources said. And, since the spare parts are likely to be funded through the proceeds of oil sales, there will be even less for food and medical supplies. "Right now, at today's prices, you would be lucky to get two and a half (billion dollars) total," said a U.N. source. In addition to the spare parts, the distribution plan anticipates dramatic increases in funding for food, water and sanitation, agriculture, electricity and education. It also includes $150 million in new funding for telecommunications improvements.

To: Broken_Clock who wrote (24372)	6/18/1998 10:28:00 PM
From: P.Prazeres	Respond to of 95453

Headline: Oil: Second Round of Production Cut Could Firm Up Market By 2H98 Author: P. Cheng/J. Kim 1(212)526-1884/2572 Company: Country: IND CUS Industry: ENERGY Today's Date : 06/05/98 * Saudi Arabia, Venezuela and Mexico announced a second round of production cuts, totaling 450 mb/d to be effective July 1, 1998. We expect other OPEC members to soon join them with an additional cut of 400-500 mb/d. * Contrary to most investors' continued skepticism, we believe yesterday's decision from these three oil producing countries has set the stage for a better pricing environment in the second half of 1998. * We think it will be a mistake for anyone to underestimate the organization's ability to act cooperatively during a crisis state. * In light of this announcement, we now project that the global oil market could actually swing back to balance by the fourth quarter 1998. We reiterate our full year oil price average estimate of $17/bbl (WTI spot basis). ***************************************************************************** Yesterday (6/4), Saudi Arabia, Venezuela and Mexico announced a second round of production cuts, totaling 450,000 b/d (Saudi Arabia: 225,000 b/d, Venezuela: 125,000 b/d, and Mexico: 100,000 b/d) to be effective July 1, 1998. Contrary to most investors' continued skepticism, we believe yesterday's decision from these three oil producing countries has set the stage for a better pricing environment in the second half of 1998. We also believe that other OPEC members will likely join them and announce cuts in relative proportion similar to the last agreement. In other words, we expect additional commitments from other OPEC members totaling roughly 400,000- 500,000 b/d. We would also reiterate our view that OPEC is serious about its recent pledge of production cuts. We continue to believe OPEC's oil policy has been, and will remain to be, governed by two common human behaviors: Fear or Greed, and it tends to perform the best while the pendulum is shifting toward the Fear factor we have already clearly reached OPEC's pain threshold. Hence, we think it will be a mistake for anyone to underestimate the organization's ability to act cooperatively during a crisis state. As a result, we now project that the global oil market could be very close to balance by the third quarter (within 500,000 b/d) and could actually swing back to balance by the fourth quarter 1998. Table 1. World Oil Demand and Supply, 1995-1998E (million barrels per day) 1995 1996 1997 1Q98 2Q98 3Q98 4Q98 1998 Demand OECD N. America 19.8 20.3 20.7 20.6 21.0 21.2 21.3 21.0 Europe 14.1 14.4 14.4 14.6 14.4 14.6 15.0 14.7 Pacific 6.7 6.7 6.7 7.1 6.1 6.4 6.9 6.6 Total OECD 40.6 41.4 41.8 42.3 41.5 42.2 43.2 42.3 Non-OECD FSU 4.8 4.3 4.4 4.6 4.4 4.5 4.6 4.5 Europe 1.2 1.2 1.3 1.4 1.3 1.2 1.3 1.3 China 3.3 3.6 4.0 4.2 4.2 4.2 4.2 4.2 Other Asia 7.9 8.5 9.0 9.1 8.8 8.6 9.6 9.0 Latin America 6.0 6.3 6.6 6.7 6.8 6.8 6.9 6.8 Middle East 4.1 4.1 4.2 4.4 4.4 4.4 4.4 4.4 Africa 2.2 2.2 2.3 2.3 2.4 2.3 2.4 2.4 Total non-OECD 29.5 30.4 31.8 32.8 32.3 32.0 33.4 32.6 Total Demand 70.1 71.7 73.6 75.1 73.8 74.2 76.6 74.9 Supply OECD N. America 11.0 11.0 11.2 11.3 11.1 11.2 11.3 11.2 lehman.com