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To: James Cherney who wrote (40015)	3/15/1999 3:31:00 PM
From: Mike from La.	Read Replies (1) \| Respond to of 95453

Oil Producers Detail Plan to Cut Oil Supply to Boost Prices Oil Producers Detail Plan to Cut Oil Supply to Boost Prices London, March 15 (Bloomberg) -- Oil producers released details about a plan to cut world oil supply an additional 2.7 percent, the latest plans from the Organization of Petroleum Exporting Countries to try to boost oil prices. Norway said it would cut 100,000 barrels of oil a day, and Qatar said it would reduce its output 47,000 barrels a day for a year beginning April 1. The details emerged following a pact by five nations Friday in which they said they'd cut more than 2 million barrels a day. Most producers, including Saudi Arabia, Iran and Venezuela haven't yet discussed the size of their planned cuts. Oil prices in New York fell on skepticism the group would adhere to its commitments, since OPEC to date has only removed three-quarters of the 2.6 million barrels a day it has pledged to cut. ''There will be difficulties in getting the approval of all OPEC countries on the new cuts,'' said Sheikh Ahmad Zaki Yamani, former oil minister of Saudi Arabia. ''There has been poor compliance to previous agreements.'' Benchmark West Texas Intermediate crude oil fell as much as 26 cents a barrel to $14.23 a barrel on the New York Mercantile Exchange. The contract was unchanged at $14.49 in recent trading, up 18 percent in the past two weeks on speculation cuts were being planned. After failing in November to agree to any measures to boost oil prices, OPEC ministers meet again March 23 with the aim to ratify cuts agreed by five top producers at a meeting in The Hague last week. Dent Saudi Arabia, Venezuela, Iran, Algeria and Mexico said after the meeting they'd make a 2 million barrel-a-day cut to supply in addition to the 3.2 million barrels a day producing nations agreed to reduce last year. In all, the reductions would total about 5.2 million barrels a day and would make a big dent in world oil supply of about 75 million barrels a day. The new cuts would take affect on April 1 and last for a year, Qatar said. Brent oil prices today are little more than half their 1997 peak of $24.91 a barrel due in part to skepticism the producers actually will make the cuts. The five nations in The Hague last week declined to give any details of the plan, saying it had yet to be ratified by the full OPEC group. Until March 23, they plan no formal confirmation of which nations agreed to cut how much. Even so, details about the accord began to seep out over the weekend. Kuwait announced on its official news service that its cuts would total about 144,000 barrels of oil a day. Saudi Arabia will cut 550,000 barrels a day, according to the Middle East Economic Survey, an authoritative industry newsletter. The Wall Street Journal said Iran would cut 200,000 barrels a day. Iran Iranian Oil Minister Bijan Namdar Zanganeh confirmed his nation would cut its output but declined to give details until the OPEC meeting, according to the nation's official Islamic Republic News Agency. The agreement will allow the ''resumption of development projects which were postponed last year'' due to the sharp drop in oil prices,'' Qatar's oil minister Abdullah bin Hamad al- Attiyah said. Yamani, the former Saudi minister, said oil prices would rise above $15 a barrel of Brent crude if there is full compliance to the new cuts. OPEC's failure to make further output cuts at its last meeting in November prompted oil prices to fall to a 12-year low of $10.35 a barrel in New York the following month. A combination of excess production, ample inventories and poor demand for winter heating fuels pushed prices down. Russia, which agreed to cut 80,000 barrels a day from its output last year, still was undecided on whether to join in the agreement this time. ''We'll specify our position later this week,'' said Oleg Rumyantsev, spokesman for the Russian fuel and energy ministry. ''It's still difficult to say whether any cuts from our side will follow.'' -------------------------------------------------------------------------------- Looks good, James. I wonder how soon we're going to the the shorts panic to cover their positions. Mike

To: James Cherney who wrote (40015)	3/15/1999 4:10:00 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

An emotional letdown after a weekend break... Amazing that nothing of substance has changed as far as the OPEC agreement, or Crude prices. We had an adrenalin driven 5 day ride. I think the 2 day break let emotions return to earth and then the Spin control like this article below took over: <<We are talking OPEC here; it could unravel at any time,'' said Dominick Caglioti, a broker at ABN Amro Energex in New York. ''We rushed up last week and we may or may not belong up here this high.''>> It could unravel at any time ? We shall see... Wouldn't you think they would take a show me attitude and not run it up untill things looked firm ? - No - they run it up - then wonder if things are firm - go figure ? --- if this is how the Street thinks; it is the textbook endorsement for buying the rumor and selling the news... only on Wall St. I don't think that a selloff will continue, unless we see specific negative OPEC Agreement news, or if crude prices selloff materially... Actually surprised by todays action. I could see mixed performance - but didn't expect an accross the board selloff... CNBC just talked about ''Gunning the Stops'' in the metals market - obviously we saw our share here today... WFT & CAM - 2 Street favs had interesting intra -day swings. Strong shorting and now covering - big, big swing in CAM - i do like that; WFT closing up & CAM up near $2 from its low. E&P's generally more mixed fwiw... Tomorrow will be interesting... I did trim some PDE & FLC at small losses - rotated into SDC; I'll ride my gains with Sante Fe from here. These high leverage companies fly on the way up and fall just as fast. I think FLC, PDE are ideal stocks for the intial mo-mo moves, but need to be the first to be sold on ANY hint of weakness. Keeping a small postion in the longterm drawer and forgetting about these two for a while... Gifi getting bought back up above $9- gotta think that news will leak on Petronius soon. Time to call their supplier, or go to the yards to find out if ''someone'' is shipping an order to GIFI - where's a scout when we need 'em.....Sarge - how far a drive to Houma La. ? a mission for an Intel man if I ever saw one.... tell me those guys in the yard don't know ... box of donuts, some hot coffee ... Anyone a strong buyer tomorrow a.m. if we get a shakeout attempt at the open ?