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

To: mph who wrote (25902)	7/16/1998 9:27:00 PM
From: Broken_Clock	Respond to of 95453

Yeah, there is just something that stirs a man when a woman pouts -g- OT... Updated Thu Jul 16 16:41 ET Full: NYMEX Oil Review: Lower on profit-taking, options expiry By Glen C. Carey, Bridge News New York--Jly 16--NYMEX crude futures fell in profit-taking ahead of the expiration of Aug options, erasing a rally Wednesday tied to US inventory data. Aug crude settled down 35c at $14.52. Aug heating oil settled down 81 points at 38.51c, while Aug gasoline settled down 143 points at 45.51c. * * * "We were pulled back on profit-taking before options expiration," a broker said, referring to the drop from Wednesday's 5-week high of $15.00. Wednesday's rally followed US inventory data showing crude stocks down 6.3-6.7 million barrels the latest week. With the expiration of Aug crude options, the market pressured the contract back down to the strike price of $14.50 in late afternoon trading. Brokers noted decent open interest on Aug crude call options at $14.50 of 5,442 contracts, which was able to overwhelm open interest of 10,445 contracts at $15.00. In the last hour of trade, the contract price fell from $14.72 to as low as $14.48. Options-related trade overshadowed news that the UN sanctions committee has put on hold Iraq's Aug crude pricing formula. This is the first time the price formula has been blocked. "This really has no impact," a broker said. "Most people believe it will be short lived." Also, Venezuela Energy Minister Erwin Arrieta said today that the results of the Vienna pact to cut oil production has been positive. Oil prices will continue to rise throughout Jly because all members of the OPEC-led pact are living up to their individual pledges to trim oil output. "The Venezuelans have been warned not to make any negative statements," a broker said, referring to claims by Venezuela that Iran was not meeting its production pledges. "The market is not watching the statements closely." Venezuela pledged cuts totalling 525,000 bpd from Jly 1 during meetings involving OPEC and several non-OPEC nations this year. Of that, 325,000 bpd came as a result of an OPEC meeting in Vienna. The market will continue to look for evidence the major producing nations are meeting their production trimming pledges. The recent supply overhang was in evidence at the US Gulf in May, when storage and pipelines were at or near full levels. But Arco today said its Seaway crude line, which connects the US Gulf with Cushing, Okla., the delivery point for NYMEX crude futures, is not expected to be at capacity in Aug. Also, high storage levels at Cushing are beginning to ease, the company said. Aug gasoline continued to be under pressure from the inventory reports showing an unexpected build in US gasoline stocks last week. OUTLOOK: The market is expected to trade slightly higher within a trading range on Friday. "We mostly will have a positive weak," a broker said. "We will be within a trading range but with a slightly upward bias." However, the weakness of gasoline is still considered a real drag on the market. "The market won't go significantly higher until product inventories get more in line," a broker said. "We are not out of the woods yet." Support is pegged at today's low of $14.36, the low from Jly 2. Key resistance on the upside is seen at $15.00. UPCOMING: --NYMEX Aug crude futures expire Jly 21. Sep crude options expire Aug 17, while Sep crude futures go off the board Aug 20. Aug product options expire Jly 28; while Aug product futures expire Jly 31. IN THE NEWS: Number Headline ------ -------- .17355 Arco sees no logjam on Seaway US Gulf-Okla. crude line .16746 Venezuela oil workers union, PDVSA start arbitration talks .17251 IRAQ: UN experts leave Baghdad with 80 samples of VX tests .16099 Equilon to close Odessa, Texas 28,000-bpd oil refinery .15929 Venezuela oil exports to avg 2.9 mln bpd in 98, 3 mln bpd '99 .15597 Venezuela's Arrieta: Results of Vienna oil cut positive .15713 IRAQ: UN confirms committee put Aug oil price formula on hold .14961 Colombia USO oil union protest begins to cut refining output