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

To: articwarrior who wrote (42136)	4/13/1999 11:12:00 AM
From: JungleInvestor	Read Replies (1) \| Respond to of 95453

Nice bullish article on oil prices: Monday April 12, 1:56 pm Eastern Time FOCUS-Oil sideways, analysts see more gains ahead (updates prices para 2) LONDON, April 12 (Reuters) - World oil prices moved sideways on Monday as dealers took a breather after Friday's hefty gains. Benchmark UK Brent blend traded six cents higher at $14.92 a barrel by midafternoon in London after jumping 60 cents on Friday amid forecasts of a large draw in stockpiled oil. Analysts said they were expecting oil to make fresh highs once the market had digested a rally which has rewarded exporters with a $3 per barrel price gain since late February. ''We reiterate strongly our view that this recovery to the $14 a barrel level area should be only the first leg of a major recovery,'' said oil analysts at Merrill Lynch. Oil production cuts by OPEC and other major producers should draw down global inventories in the second half of 1999 sufficiently for prices to rise to the mid to high teens, the bank said in a note to clients. Tanker trackers said even before the cuts came into effect in April that oil in transit at sea was running at low levels. UK-based Oil Movements said oil in transit had slipped to a two-year low at the end of March. ''Through the month, the draw on stocks at sea was of the order of 30 million barrels,'' Oil Movements said. Stocks by April 4 were at 427 million barrels compared to 462 million at the end of February, it said. Last week energy thinktank the International Energy Agency said it saw stockpiles ebbing by some 330 million barrels by the end of this year. The forecast assumed 85 percent compliance by producers with the March pact of supply curbs. The IEA said OPEC's task in rebalancing world oil markets had been helped by strong demand from major industrialised countries at the end of the northern hemisphere winter. But the picture is not so bright for oil producers among the main non-OECD countries of Asia, Latin America and the CIS, where recession continues to stunt consumption. Prices in dollars a barrel: April 12 April 9 1500 GMT (close) IPE May Brent 14.92 14.86 NYMEX May light crude 16.53 16.57