Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Captain James T. Kirk who wrote (39825)	3/13/1999 9:29:00 AM
From: BigBull	Read Replies (2) \| Respond to of 95453

Cuts "more than needed"? Energy News Sat, 13 Mar 1999, 9:19am EST Crude Oil Could Lead Commodities Higher on Output Cuts (Repeat) (Repeats story published March 12; adds details on oils supplies in eighth paragraph.) New York, March 13 (Bloomberg) -- Crude oil could lead commodities higher in the days ahead following an agreement among producers to cut world supply by more than 2 million barrels a day, or about 2.7 percent. The promised cutback ''is considerably more than we and the market were expecting,'' said John Saucer, an analyst at Salomon Smith Barney in Houston. ''It may even be more than is needed and may lead to a tighter market later in the year.'' Saudi Arabia, the world's top producer, and a dozen other countries will take part in the latest round of oil out reductions aimed at boosting prices that fell to a 12-year low in December. The agreement was announced Friday in The Hague by Saudi oil minister Ali Al-Naimi following a meeting of oil ministers from five countries. The Bridge-Commodity Research Bureau Index rose 1.74, or 0.9 percent, this week to 188.27; while the energy-weighted Goldman- Sachs Commodity Index rose 5.66, or 4.1 percent, to 142.88. Crude oil for April delivery rose $1.19, or 9 percent, this week to $14.49 a barrel on the New York Mercantile Exchange. During the day, the contract briefly rose above $15 a barrel for the first time in five months. As a result of the announcement in The Hague, ''we are now more confident of our $12-$17 a barrel'' price forecast for crude oil the second and third quarters, Saucer said. To be sure, the size of price gains in coming weeks is likely to be limited, as traders await signs that producers are honoring their new reduction pledges. The Paris-based International Energy Agency estimates the industrialized nations have 83 days' supply of crude and petroleum products on hand. That's little changed from the 82 days at the end of 1997, even after OPEC pledged last June to cut 2.6 million barrels a day from world markets. OPEC next meets on March 23. Further details on the output-cutting plan will be announced at the March 23 meeting of the Organization of Petroleum Exporting Countries in Vienna. The cuts are to begin in April.