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

To: Gary Burton who wrote (43399)	4/28/1999 8:30:00 AM
From: diana g	Read Replies (2) \| Respond to of 95453

Crude Oil Rises in London After U.S. Oil and Gasoline Supplies Decline (Bloomberg) quote.bloomberg.com Crude Oil Rises After U.S. Oil Inventories Decline (Update2) London, April 28 (Bloomberg) -- Crude oil rose more than 1 percent after U.S. oil inventories fell more than expected, signaling lower output from the Organization of Petroleum Exporting Countries is eroding excess supplies. Crude oil inventories in the U.S., the top energy-consuming nation, fell 1.4 percent to 336.4 million barrels last week, the American Petroleum Institute said. U.S. oil imports posted the largest drop in five months as OPEC and four other nations adopted lower production targets designed to boost prices. ''This could be the first sign the production cuts are filtering through,'' said Christopher Bellew, a broker with Prudential Bache (Futures) Ltd. Brent crude oil for June delivery gained as much as 21 cents to $16.01 a barrel in afternoon trading on the International Petroleum Exchange in London. June crude oil on the New York Mercantile Exchange gained 21 cents from yesterday's close to $18.02 a barrel in electronic trading. The decline in oil inventories was more than four times that analysts expected and indicates the April 1 cuts, equal to 2.7 percent of world supplies, is forcing refiners to dip into their tanks to meet demand for gasoline and other products. The group during the past year failed to adhere to output quotas, sending oil prices to a 12-year low. Any sign that producers have resumed overproduction would send oil prices tumbling, traders said. Lower Supplies With refiners burning inventories, oil supplies in the U.S. are now 6.64 million barrels lower than this time a year ago, according to the API. ''The overhang (in supplies) is being reduced,'' said John Toalster, head of energy research at SG Securities Ltd. ''The market is looking better for oil companies and investors alike.'' Meanwhile, gasoline demand last week surged 5.9 percent to 8.9 million barrels a day, offsetting a rise in imports. Traders focus on gasoline supplies as summer approaches, because demand is highest for the fuel then as better weather and national holidays encourage travel. Because of a difference of about $2 a barrel between U.S. and European benchmark oil prices, U.S. refiners could be tempted to buy cheaper European supplies, which would be about 70 cents a barrel cheaper than U.S. crude oil purchased at Cushing, Oklahoma, even after shipping and insurance costs are added, traders said.