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Gold/Mining/Energy : Global Santa Fe (GSF) (formerly Global Marine) -- Ignore unavailable to you. Want to Upgrade?

To: MoneyPenny who wrote (759)	6/22/1998 5:11:00 PM
From: General Crude	Read Replies (1) \| Respond to of 2282

Oil prices surged today. Energy Prices Soar on Rumors Of Production Cuts by OPEC An INTERACTIVE JOURNAL News Roundup Crude-oil and product futures prices soared Monday amid rumors that the Organization of Petroleum Exporting Countries will announce further cuts in production at a meeting this week in Vienna. Gasoline prices also rallied, following a report of problems at Exxon's large refinery in Baton Rouge, La. In late afternoon trading at the New York Mercantile Exchange, July crude oil futures were up $1.36 to $13.20 a barrel, after hitting a midafternoon high of $13.70. Meanwhile, July gasoline was up 1.17 cents to 46.95 cents, after hitting a midday high of 47.50 cents, and July heating oil was up 90 cents to 38.30 cents. Speculators have been short on crude futures for the last week, analysts said. But Monday, the speculators were seen covering their positions, expecting further production cut announcements by the Organization of Petroleum Exporting Countries, which is meeting in Vienna this week. Traders said some support came from unconfirmed reports that Kuwait may be willing to increase its production cutbacks from the currently agreed 75,000 barrels per day. The Kuwaiti Oil Minister Sheik Saud Nasser al-Sabah said Monday that OPEC would again review the size of production cutbacks if oil prices don't recover. "If it turns out that the reductions committed so far by producers won't affect the prices, then there will be a need to review this subject," he said. So far, the OPEC has announced cuts of 620,000 barrels a day, and non-OPEC countries Mexico, Russia and Oman have pledged an additional 203,000 barrels a day to prop up oil prices. Non-OPEC Egypt announced over the weekend that it will cut 20,000 barrels a day of crude production, but Norway said Monday that it has no plans at present to reduce output. Despite OPEC's efforts to cut product and boost prices, crude oil analysts have said that oil producers need to cut about a million barrels a day to make a real difference in the world oil market oversupply. OPEC tried to improve prices in March by announcing 1.224 million barrels a day in cuts, but analysts said the oil cartel came up short of its promises and cut a little less than a million barrels. OPEC quotas set in Jakarta in November expire at the end of June, but the source said there is likely to be no mention at this meeting of what will happen to quotas after this period.