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

To: upanddown who wrote (44221)	5/6/1999 7:22:00 PM
From: Captain James T. Kirk	Read Replies (1) \| Respond to of 95453

May 6, 6:25 pm Eastern Time Crude Tumbles on Shell's Pessimism By CLIFF EDWARDS AP Business Writer Crude oil futures tumbled 3.5 percent Thursday on the New York Mercantile Exchange after executives from the world's largest oil company expressed doubts about producers' ability to maintain output cuts. On other markets, palladium futures soared, boosting other metals, while coffee retreated. Crude fell sharply, threatening at one point to go below $18 a barrel, after Royal Dutch-Shell Group indicated in its first-quarter earnings report that a 52 percent jump in prices this year may lead to quota-busting among the world's larger producers. Ten members of the Organization of the Petroleum Exporting Countries and other key producers, including Mexico and Norway, have agreed to cut output 2.1 million barrels, on top of 3 million barrels they agreed to take off the market last year. Prices have jumped amid indications the cuts are being made, but analysts and others have warned that OPEC does not have a history of lasting cohesiveness. Many members in the past have exported beyond their stated targets since most oil-rich countries rely on those revenues for domestic spending needs. ''Production discipline may be difficult to maintain if prices do rise, and a new phase of price weakness could be triggered,'' Shell said in its earnings statement. Energy futures also were pressured by news the Group of Seven industrialized nations and Russia had agreed on a framework for peace in Yugoslavia after a heavy NATO bombing campaign. If a final deal is reached, demand for jet fuel could fall sharply, analysts said. Light, sweet crude for June delivery fell 66 cents to $18.32 a barrel; June unleaded gasoline fell 1.81 cents to 54.44 cents a gallon; June heating oil fell 1.57 cents to 44.22 cents a gallon; June natural gas fell 6.4 cents to $2.295 for each 1,000 cubic feet. In London, North Sea Brent Blend crude oil for delivery in June fell 49 cents to $16.56 a barrel. Palladium futures soared on the New York Mercantile Exchange after Japanese buyers returned from a long holiday to snap up available supplies for use in automobile emission-control devices, jewelry and electronics. While Russia, the world's largest producer of the metal, has begun selling large supplies to get desperately need currency, there are no major contracts set with Western buyers. June palladium rose $19.25 to $313.45 an ounce. The sharp gains also prompted options-related buying in other metals markets. August gold rose $2.20 to $292.50 an ounce. October platinum rose $4.60 to $358.50 an ounce. Coffee futures fell on the Board of Trade of the City of New York after respected crop forecaster Leon Yallouz predicted Brazil's crop will be larger than previously expected. Yallouz' private report issued to client predicted the nation's largest coffee grower will have a harvest of between 25.2 million bags and 26.4 million bags -- figures about 4 percent higher than his previous estimates. The large harvest would be the second consecutive year of plentiful supplies from Brazil. And while its crop is the robusta bean not favored by gourmet coffee drinkers, the beans often are mixed into blends. July arabica coffee fell .45 cent to $1.032 a pound. --------------------------------------------------------------------------------