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To: SargeK who wrote (40576)	3/22/1999 10:51:00 AM
From: Wallace Rivers	Read Replies (1) \| Respond to of 95453

Hello everyone. The price action in GIFI vs. the OSX today is not the greatest. Anyone hearing anything on Petronius?

To: SargeK who wrote (40576)	3/22/1999 5:31:00 PM
From: BigBull	Read Replies (1) \| Respond to of 95453

Hey Sarge - DoomBerg is still reporting a high level skepticism about the cuts. Good! More "fuel for the fire". Russia announces cuts. Diesel fuel goes "to the Moon ... Alice ... to the Moon!" Gas prices are going up so fast here in Charleston that station managers can barely post the new prices fast enough. Energy News Mon, 22 Mar 1999, 5:19pm EST Crude Oil Rises to 5-Month High Before OPEC Meeting (Update1) (Adds details and comment on gasoline, heating oil markets beginning in 13th paragraph.) New York, March 22 (Bloomberg) -- Crude oil rose almost 2 percent to a five-month high as the Organization of Petroleum Exporting Countries meets in Vienna to ratify an output-reduction agreement intended to eliminate a worldwide glut. OPEC will be voting on an agreement with non-OPEC producers for a 2 million-barrel-a-day cut in output, made after prices fell to 12-year lows in December. Including cuts pledged last June, producers will be trimming the daily supply by more than 5 million barrels, or about 7 percent. ''We have new OPEC cuts and the whole equation looks better for prices,'' said Michael Fitzpatrick, a trader at Fimat USA Inc. in New York. April crude oil rose 26 cents, or 1.7 percent, to $15.50 a barrel on the New York Mercantile Exchange, the highest closing price since Oct. 2. The April contract expired today. The active May contract rose 38 cents to $15.74 a barrel. In London, May Brent crude oil rose 43 cents, or 3.2 percent, to $13.88 a barrel on the International Petroleum Exchange. Even though producers last year pledged cuts totaling 3.23 million barrels a day, compliance with the agreement slipped and demand from Asia fell, sending prices to the December low. Compliance by OPEC members with last year's output reduction agreements was 79 percent in February, according to Bloomberg figures, and that's generated some speculation that producers will have trouble achieving the new reductions. ''There is an immense level of skepticism,'' said Bill O'Grady, vice president and director of fundamental futures research at A.G. Edwards & Sons in St. Louis. Traders ''can't believe they're going to cut 2 million barrels.'' Oil prices have climbed about 25 percent since March 1 on optimism that exporters will follow through on this month's reduction agreements. Russia Russia today became the fourth country outside of OPEC to pledge cutbacks this year, joining Oman, Norway and Mexico. Russia said it will trim exports by 100,000 barrels a day, doubling cuts the world's third-largest oil producer has promised so far. Meanwhile, heating season in the Northern Hemisphere is ending. which means energy demand will decline until the warm- weather driving season gets underway. ''We're headed into the weakest demand period. They'd better make all of those cuts,'' said Tom Bentz, senior vice president- energy at Cresvale International LLC in New York. Recent refinery outages on the West Coast boosted spot prices for gasoline and other refined products in the region, sending futures prices up as well. Traders speculated that output from refineries along the Gulf of Mexico could be shipped to California, which would tighten supplies in New York, where Nymex futures are delivered. ''California diesel was selling for 80 cents a gallon because of all the outages,'' rising about 10 cents today, said Donald Luke, another trader at Fimat USA. April gasoline rose 1.78 cents, or 3.7 percent, to 49.42 cents a gallon, the highest closing price since June 5. April heating oil rose 1.7 cent, or 4.2 percent, to 42.39 cents a gallon, the highest closing price since Sept. 24. Atlantic Richfield The latest refinery outage came from Atlantic Richfield Co., which today said two units at its 265,000-barrel-a-day refinery near Los Angeles will be out until the end of the week. Arco originally expected to restart the 90,000-barrel-a-day catalytic cracker and 43,000-barrel-a-day hydrocracker in Carson, California, within two to three days of the March 18 power outage. The catalytic cracker produces gasoline. The hydrocracker makes high-octane gasoline and high-grade fuel oil. Los Angeles-based Arco is buying petroleum products on the market to supply customers, a company spokesman said. -------------------------------------------------------------------------------- © Copyright 1999, Bloomberg L.P. All Rights Reserved.