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To: Post_Patrol who wrote (44250)	5/7/1999 9:28:00 AM
From: Captain James T. Kirk	Respond to of 95453

May 7, 1:28 am Eastern Time Sizzling oil rally halts, but downside seen limited By Neil Fullick SINGAPORE, May 7 (Reuters) - A sizzling rally in crude oil prices came to a halt in Asia on Friday as players cashed in huge gains in profits, but the downside was seen limited. In overnight markets New York tumbled 66 cents to $18.32 per barrel, down 3.5 percent on the day, while London's Brent contract shed 49 cents to $16.56, down just under three percent. There was more, but moderated, selling in Asia on Friday. New York Mercantile Exchange (NYMEX) traded June crude futures were down eight cents from New York's close at $18.24 per barrel at 0505 GMT. Crude prices had gained more than 75 percent in the months since they hit a 12-year low in December 1998, pushed higher as OPEC and other producers cut production. ''The OPEC cuts have got us up to $19 (per barrel), so the market was due a correction,'' said Matt Sims, a broker with ED&F Man in New York. Analysts said others may be tempted to cash in the gains seen in oil prices so far this year. But they said so long as OPEC can maintain around 80 percent compliance with its promised cuts crude should maintain a level around $18 to $19 basis NYMEX futures. ''I was not surprised to see oil prices come off. But I wouldn't expect oil prices to fall much from current levels unless we get some bad news on the OPEC compliance front,'' said James Brown, an analyst at Merrill Lynch. A Reuters survey on Thursday showed OPEC had achieved 81 percent of its promised production cuts in April, in line with market expectations after a preliminary survey last week estimated cuts at a similar level. OPEC and other producers have pledged to cut more than two million bpd (barrels per day) of supply, which the World Bank said on Wednesday would create a supply deficit of 600,000 bpd in 1999 -- assuming 70 percent compliance from the often undisciplined OPEC. Despite the overnight fall, oil prices are still more than 70 percent higher than the 12-year lows hit in December 1998. The latest sell off was triggered after NYMEX crude futures rallied to 16-month highs above $19 earlier in the week, tempting some players to cash in on their considerable gains. In addition, the firm price of crude has not been followed by products, pinching the profit potential of the world's refineries and prompting them to slow down their crude buying. Refineries need to sell products at a price above crude after accounting for processing costs. Refiners in Singapore, the main export centre in Asia, were estimated to be running at just 80 percent of their combined 1.24 million bpd production capacity anyhow. But traders said with profit margins so tight, the refiners may have to cut production even further. However, OPEC members have promised to keep supplies tight for the rest of the year, supporting oil prices. OPEC, which supplies around 37 percent of world oil, has promised to reduce its supplies by almost 16 percent to keep oil prices on the rise. Middle East members raised their selling prices some 20 percent in April, generating a huge increase in income. The governments rely on oil flows for around 70 percent of their income. Last year, OPEC said the oil slump cost the cartel more than $50 billion in lost revenues compared with 1997.

To: Post_Patrol who wrote (44250)	5/7/1999 9:48:00 AM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

Hit List: SII - $ 1 3/16, HAL - $11/16,CAM - $ 1 3/8, SLB - $15/16 It's about making money - period. No emotion - no wishing, wanting & no rooting for the ''Home Team'' - NO EMOTION - just profits ! The ''Hit List'' leads the OSX downside open once again.... Post Patrol - are you getting this all down, or am I going a little too fast for you ? . From outside the 3 - point line, off the glass - nothing but net... PS - where's the ''Sherriff'' ? - can never find the damn ''PC" Police when ya need 'em... Gimmmmie the damn Ball ! >>>VBG<<<