http://dailynews.yahoo.com/htx/nm/20010620/bs/markets_oil_dc_20.html

-- Anonymous, June 20, 2001

Answers

Wednesday June 20 3:53 PM ET

Oil Prices Plunge After Gas Stocks Build

By Michael Georgy

LONDON (Reuters) - Oil prices dropped around $1 a barrel on Wednesday to their lowest levels in two and a half months after a build in U.S. oil product stocks sparked a rout in the key summertime fuel, gasoline.

In London, benchmark Brent blend crude futures fell to fresh lows as the contract ended 83 cents weaker at $26.13 a barrel, helped by selling on several technical fronts and bringing losses in the past five days to almost $3.50, or 12 percent.

U.S. light crude, which has dropped about $3 so far this week, ended down $1.48 at $26 a barrel due in part to the expiry of the frontmonth July contract. August delivery light crude futures closed down $1.19 at $26.45 a barrel.

The market seemed most sensitive to a build in crude and oil product stocks in the huge U.S. market, particularly a rise in gasoline inventories since it further eased fears that supplies might not meet peak summer driving demand.

The U.S. Department of Energy's Energy Information Administration (EIA) said in its weekly report on Wednesday that gasoline stocks rose 3.7 million barrels to 219.7 million barrels and are 9.9 million barrels above year-ago levels.

This amplified a 3.6 million barrels supply increase shown on Tuesday by the American Petroleum Institute (API), which also shows total gasoline stocks 27 million barrels higher than they were at the end of March.

Unleaded gasoline futures were quick to react to the bearish news, collapsing 6.37 cents to 79 cents a barrel -- down over eight cents, or 9.5 percent, this week alone. Heating oil dropped 3.28 cents to 74.16 cents a gallon.

The API showed a 1.4 million barrel increase in crude stocks and the EIA showed a decline of 700,000 barrels, but markets largely focused on the product builds.

IRAQ SIGNALS OUTPUT PLANS IN U.N. STANDOFF

Despite the heavy losses, traders said the prolonged Iraq-U.N standoff provided an undertone of support as the timing of a possible restart of exports remained unclear.

``It looked like Iraq was going to patch things up with the U.N. but there is no hard and fast evidence that supplies will resume,'' said Tony Machacek of Prudential Bache.

Baghdad on Wednesday made clear its intentions in its latest confrontation with the United Nations over sanctions imposed after Iraqi troops invaded Kuwait in 1990.

Iraqi Deputy Prime Minister Hikmat Mezban Ibrahim said that a U.N. resolution to revamp sanctions would mean the suspension of its oil-for-food exchange with the world body.

The remarks were the first signal since the showdown started of Baghdad's intentions on oil-for-food if new sanctions proposed by the United States and Britain are adopted.

Iraq halted exports on June 4 after the Security Council extended the oil-for-food program for one month instead of the usual six to give it time to ponder the new ``smart sanctions'' focused on Iraq's military machine.

Bullish news also came from Nigeria where a strike by the senior staff of Shell Nigeria shut some of its flow stations with the possible loss of over 100,000 barrels per day (bpd) of crude supplies, officials said.

Oil industry officials said they were bracing for further disruptions next week when blue-collar workers of the NUPENG union plan their own strike over conditions.

Uncertainty over Iraq has raised questions over what course of action the Organization of the Petroleum Exporting Countries will take when it holds an emergency output policy meeting in Vienna on July 3.

Hojjatollah Ghanimifard, acting vice president of the National Iranian Oil Company (NIOC) told Reuters on Wednesday that OPEC does not need to boost output at its July 3 meeting if Iraqi oil exports resume early next month.

-- Anonymous, June 20, 2001

I bought Enron a short while back at 58. Now it is 44 and sinking fast. Where's the NWO when you need them?

-- Anonymous, June 21, 2001

Oil Gas futures COLLAPSE. Guess the "rulers" decided to lower prices for the Serfs

Do you think gasoline prices are going to COLLAPSE any time soon, Cpr?

-- Anonymous, June 22, 2001

If you expect shortages or price crashes you will be disappointed. CRUDE tells the whole story and has returned to 26-28 WAY BELOW last year.

Gasoline was driven by speculators in the middle market thinking that they could horde from March and liquidate at high prices in summer. In fact the March Futures closed 20 cents above April.

BUT.....prices have crashed in the wholesale spot and futures market since Memorial day weekend.

SORRY OIL DOOMERS BUT OPEC WANTS A CONSTANT FLOW OF DOLLARS BETWEEN THEIR ANNOUNCED LEVELS and will tolerate 2-3 dollars above or below the 22-26/bbl.

Higher prices encourage US drilling and OPEC isn't thrilled with that. Lower prices and they don't make enough to thrill them either.

PRICES ARE DOWN IN THE LAST 2 months and heading for the avg. prices of 1993-1997. The 1998-9 the IGNORANTS use as a base is BULL SHIT.

Pricing will return to $1.20-1.50 depending on location with Calif. higher.

AVG price. per gaswatch.com NOW: 1.56 DOWN 15 cents from 1.71 when I posted that gas prices would fall 15.25 cents.

FUTURES: DOWN 20cents across the board and below .80 now below April pricing.

This is driving season. Prices should have remained level until mid- Aug.

-- Anonymous, June 22, 2001

Ah I feel the power coming. We got 'em by they little turbans now.

-- Anonymous, June 23, 2001

You mean they aren't towels?

-- Anonymous, June 25, 2001