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

To: BigBull who wrote (40160)	3/17/1999 8:50:00 AM
From: SargeK	Read Replies (1) \| Respond to of 95453

Hey Bull, We may get some broader exposure on Coopers/IBD new investment board. Check it out. You may wish to join. clubs.yahoo.com K

To: BigBull who wrote (40160)	3/17/1999 9:09:00 AM
From: BigBull	Respond to of 95453

Is DOOMBerg becoming BOOMBerg? Nah! These guys just can't bring themselves to write a totally bullish oil article (wrt: the last 4 paragraphs). Jeez, when oil goes to 18 bucks, these guys will still be talking: the glut, the glut, the glut. Energy News Wed, 17 Mar 1999, 8:54am EST N.Y. Crude Oil Seen Rising as U.S. Gasoline Supplies Drop London, March 17 (Bloomberg) -- Crude oil is expected to rise after a weekly report signaled a surge in U.S. gasoline demand ahead of the spring driving season in the world's top oil- consuming nation. Crude oil for April delivery on the New York Mercantile Exchange is expected to rise 25 cents from $14.46 a barrel. Brent crude oil for May delivery rose as much as 36 cents, or 2.8 percent, to $13.04 a barrel on the International Petroleum Exchange in London. Oil prices have climbed more than 25 percent during the past month on hopes oil exporters will cut output. The American Petroleum Institute said gasoline inventories dropped 3 percent last week, the biggest decline in five months as gasoline demand jumped 17 percent from a week earlier. A separate, U.S. Department of Energy estimate later today could confirm the API numbers. ''We've had a bullish trend over the past few weeks and these figures are just what the market needed to go higher,'' said Stuart Deferia, a broker with ADM Investor Services International Ltd. Oil prices in New York last week reached $15.11 a barrel, a five-month high, after producers announced a plan to idle more than 2 million barrels of daily output. Hit the Road A drop in global oil production would come just as the spring and summer travel season in the U.S. gains speed. Gasoline demand, as derived from the report, last week surged 17 percent to 9.02 million barrels a day, the highest rate in 10 weeks, according to the API. U.S. refineries are stepping up operations to meet the rise in demand, with utilization increasing to 93.3 percent of capacity from 93.1 percent, a move that could reduce crude oil supplies in coming weeks. ''The implied demand figure is really quite good for this time of year,'' said David Nesbitt, a broker with Prudential Bache (Futures) Ltd. ''Oil is being burned and so it has to be replaced.'' The 6.98 million-barrel drop in gasoline inventories was larger than the 1.1 million-barrel to 200,000-barrel decline predicted by analysts. Inventories of distillate fuels, a group of products that includes heating oil, also fell more than expected, leaving supplies 7 percent or 8.53 million barrels higher than a year earlier, according to the API. A week earlier, supplies were 15 million barrels or 12 percent above year-ago levels. While crude oil supplies rose more than expected, 85 percent of the increase occurred west of the Rocky Mountains -- a region traders often discount because it isn't linked to the rest of the U.S. by pipeline. OPEC Gains in oil prices were limited by concern producers could fail to reach an agreement to cut output when the Organization of Petroleum Exporting Countries meets March 23. Oil exporters at a meeting in the Netherlands last week announced a plan to cut production by at least 2 million barrels a day, without giving any details of how those cuts would be achieved. Since then, OPEC members have provided conflicting estimates of how the reductions will be achieved. An OPEC delegate said Venezuela would cut production by 125,000 barrels a day, though the Venezuelans said they will only cut only 75,000 barrels a day. Similarly, the OPEC delegate said Indonesia would idle 93,000 barrels a day, while Indonesia has said it will cut output by just 34,000 barrels. ''The only negative now is OPEC, where reports are indicating they can't agree,'' Nesbitt said. -------------------------------------------------------------------------------- © Copyright 1999, Bloomberg L.P. All Rights Reserved.