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To: Think4Yourself who wrote (44921)	5/18/1999 11:42:00 AM
From: Captain James T. Kirk	Read Replies (1) \| Respond to of 95453

New York--May 18--NYMEX crude and product futures are seen lower following weak overnight trade ahead of American Petroleum Institute data released this afternoon, which are expected to show a rise in inventories of US crude and products last week. The market's slide is also blamed on poor refinery margins, with gasoline dragging down the complex, brokers and traders said. * * * NYMEX Jun crude ended the overnight Access session down 34c at $17.60. Jun heating oil ended down 74 points at 41.65c, while Jun gasoline ended down 66 points at 50.40c. The market's recent weakness is linked to poor crack spreads that have made refining gasoline and heating oil unprofitable, brokers and traders said. Gasoline is leading the tumble in prices, with driving season around the corner and a supply overhang, they said. "The products are sinking this market," a broker said. "(They) are not keeping pace with crude and disturbing the (market) relationship." Jun crude is expected to move lower to test key support at $17.33, Wednesday's low. However, if the contract breaks through $17.33, that could trigger more stop-loss orders to sell, pushing Jun crude to a 4-week low at $16.70. The market is also anticipating an across-the-board increase in inventories, which is pressuring the complex, most brokers and traders said. "Basically we're expecting stock builds and a drop in runs," a broker said. "The same old story with refinery runs being so poor." US crude inventories are expected to have increased 1.5-2.5 million barrels last week, brokers and analysts said. Stockpiles of gasoline and distillates--which include heating oil and diesel fuel--are anticipated to have increased 1.0-2.0 million barrels last week. UPCOMING: --Jun crude options expire Monday. Jun crude futures expire Thursday. --Jun product options expire May 25, while Jun product futures expire May 28. --American Petroleum Institute data will be released after 1600 ET Tuesday, while the US Department of Energy reports after 0900 ET Wednesday