The following story seems to have been quashed.

"meg Unregistered User (1/26/00 9:58:49 pm) Reply DOE acts to reduce oil delivery pressures.........

Bill Richardson has announced that the DOE will be rerouting 5 million barrels of oil previously earmarked for addition to the SPR.

see article

Associated Press

http://www.newsday.com/ap/rnmpwh1n.htm xBob Unregistered User (1/27/00 7:13:53 am) Reply That disappeared fast

Well, that one was pulled quickly.

That link now brings up a story about Waco. marc Unregistered User (1/27/00 8:23:04 am) Reply comments

do we know over which period ? I understand they want to receive their royalty oil later, so what is the time swap ? they talk abt 5 mio bbls, but i heard that 18 mio bbls are going to be affected. details, please.

Anyway, this action is going to scare opec into line and could be the first shot across the bow, prior to actual sales from the spr. I don't think it will happen as message that we want stable mkts will get across to opec ?

So, now we could have a decent correction especially with latest national forecast for early feb going from normal to above for all of the usa? In europe, distillates are coming down hard despite the us pull. Not a good sign.

Here, i would think more of a pullback to 26-27 range, pause and then rally again towards new highs by 2nd half february. what think? Nadine Davida Unregistered User (1/27/00 8:38:17 am) Reply Dependence on Oil is A National Security issue.

(to paraphrase from www.dieoff.org)

Not something to be discussed with quasi-mathematical horse race metaphors. Downstreamer Administrator (1/27/00 9:38:38 am) Reply "R'son, who yesterday ruled out selling oil....."

Crude Oil Falls on Speculation Output Will Rise After March

New York, Jan. 27 (Bloomberg) -- Crude oil fell for a second day on speculation that oil exporters will raise output at a March meeting, after prices more than doubled in the past year.

Saudi Arabian oil minister Ali al-Naimi and his Norwegian counterpart, Marit Arnstad, yesterday said the oil market has returned to ``equilibrium,'' signaling that a global surplus is gone. That could mean an extension of an output-cutting agreement, which had been recommended by an OPEC committee earlier this month, was no longer assured.

The comments mean that ``there's now no guarantee that they will extend the agreement beyond March,'' said Nauman Barakat, vice president of global energy trading at ABN Amro Inc. in London. ``Before, it was a foregone conclusion that they would extend it.''

Crude oil for March delivery fell 18 cents, or 0.7 percent, to $27.66 a barrel in electronic trading on the New York Mercantile Exchange. Oil is expected to trade at similar prices when floor trading starts.

In London, Brent crude oil for March settlement fell as much as 43 cents, or 1.7 percent, to $25.70 a barrel on the International Petroleum Exchange.

Crude oil prices are up 8 percent this month, as the Organization of Petroleum Exporting Countries and other producers, including Norway and Mexico, succeeded in eliminating a glut of oil on the world market by restricting production.

Al-Naimi and Arnstad pledged to keep output limits in place at least through the end of March, but did not propose an extension, as advocated earlier by the Saudi minister.

U.S. Energy Secretary Bill Richardson, who yesterday ruled out selling oil from the nation's Strategic Petroleum Reserve to help combat soaring prices, will meet with officials in exporting countries to discuss prices that are close to nine-year highs.

Jan/27/2000 9:43"

-- ng (cantprovideemail@none.com), January 27, 2000

Answers

What i don't understand is that if oil comes back down and the refineries are still not producing what difference would it make? Somebody please explain this to me.

-- David Whitelaw (Dande53484@aol.com), January 27, 2000.

My prediction is that they will raise production by 500 per day at the most. This will satisfy the world that they are willing to play along, but what the world should think about is how much we're at a deficit right now. I figure we're in the hole by about 3 million per day. These guys will cut and everyone will breath a sigh of relief and then later realize we're well and truly screwed anyway just as we get into gasoline season. Caveat Emptor.

-- Gordon (g_gecko_69@hotmail.com), January 27, 2000.