biz.yahoo.com Valero Energy Corporation Responds to Moody's Announcement Friday January 31, 2:30 pm ET

Currently, U.S. Gulf Coast gasoline margins are $7.20 per barrel, which is extraordinarily high for this time of year. And, based on the forward curve, the gasoline margin for the year is currently $5.20 per barrel, which is the highest gasoline margin in the last 15 years. It is also higher than the gasoline margins in 2002 and 2001 (which were $4.72 per barrel and $4.97 per barrel respectively) when Valero achieved record earnings.

"And, gasoline margins should remain strong, supported by tightening inventories, strong demand and the impact of the Venezuelan strike," said Greehey. "Gasoline inventories fell 3 million barrels last week and inventories are 4 million barrels lower than this same time last year. Meanwhile, gasoline production is down 500,000 barrels per day (BPD) since the first of the year. In addition, the strike in Venezuela has reduced gasoline imports into the U.S. by 55,000 BPD and has reduced exports to other countries (primarily Latin America) by another 175,000 BPD. This in turn has resulted in increased U.S. exports to Latin America. And, European barrels that would have typically been imported to the U.S. are now going to Latin America. At the same time, demand is up more than 4% over the last four weeks compared to the same period last year."

www.brudirect.com

Washington - U.K. Prime Minister Tony Blair said the Bush administration should seek another resolution at the United Nations to approve any military action against Iraq, in a shift toward European demands in the confrontation.

It's right that we go for a second resolution,'' Blair said in an interview on Cable News Network. That's the way of saying this is an issue the international community isn't going to duck.''

President George W. Bush, who is holding talks today with Blair at the White House, has said the U.S. would be prepared within weeks to use force to disarm Iraq of weapons of mass destruction. Bush has also said a new resolution isn't needed to justify an attack.

Blair is Bush's strongest ally against Iraq and was one of eight European leaders, including Spanish Prime Minister Jose Maria Aznar, who wrote a letter this week calling for unity with the U.S. against Saddam Hussein. That statement was aimed at France and Germany, which have opposed Bush's policy.

The U.K. has joined the U.S. in a military buildup in the Gulf region, and the two countries will have about 215,000 troops in the area ready for a military strike by mid-February.

Blair had urged Bush to seek the first UN resolution against Iraq that cleared the way for weapons inspections and demanded that the country disarm. The Security Council unanimously passed that resolution on Nov. 8.

Oil Falls

Oil fell for the first time in four days on expectations that Blair will press Bush to give weapons inspectors more time to find chemical, biological and nuclear arms or development efforts.

Crude oil for March delivery was down 23 cents, or 0.7 percent, at $33.62 a barrel as of 12:20 p.m. on the New York Mercantile Exchange.

War concern, and a strike in Venezuela, have spurred a 24 percent rally in oil prices since early December.

Blair, said if the Iraqis ``carry on as they are now, they're in breach'' of UN mandates. At the same time, the British leader said UN weapons inspectors, now numbering more than 100 on the ground in Iraq, should be given more time to finish their work.

Not Cooperating

``It's absolutely clear'' the Iraqis are not giving full cooperation to UN weapons inspectors, Blair said, echoing a contention made to the Security Council this week by the top arms inspector, Hans Blix.

Blair's comments came after UN Secretary General Kofi Annan said a majority of Security Council members want arms inspections to continue before considering military action.

Annan, answering a reporter's question, acknowledged yesterday that ``the sense of'' a Security Council meeting was that at least 11 of the 15 governments want the search for any banned Iraqi weapons to continue before they will approve the use of military force.

The question of how to proceed against Iraq has produced a rift in Europe, with France and Germany against using military force, and Russia skeptical of Bush's stance.

Bush said he prefers to work with allies and through the UN.

Greek Prime Minister Costas Simitis, holder of the European Union's rotating presidency, denounced the published letter backing Bush written by the eight European leaders, saying it ``creates problems because it happened without the necessary communication.''

Summit Call

Simitis said he is prepared to call a special European Union summit to take up the Iraq issue. The European Parliament yesterday passed a resolution opposing military action. The body said a ``a pre-emptive strike would not be in accordance with international law'' and may lead to a deeper Middle East crisis.

U.S. Secretary of State Colin Powell will address the Security Council Feb. 5 to provide intelligence that the U.S. says shows Hussein is hiding weapons of mass destruction.

An extension of diplomacy on Iraq is also sought by Blair's critics at home, including members of his own Labour Party.

Support for Blair's Labour government fell three points this month, to 36 percent, the lowest in more than two years, a YouGov poll published in the U.K.'s Daily Telegraph newspaper showed.

Blair didn't explicitly back Bush's declaration in his State of the Union address that Hussein ``aids and protects'' al-Qaeda terrorists and may secretly supply them with a mass-destruction weapon. The British leader said he would wait for Powell to disclose evidence at the UN.

``I certainly have no doubt, on a broad level, these issues of international terrorism and weapons of mass destruction are linked,'' Blair told CNN. -- Bloomberg News

www.whitehouse.gov SUBJECT: Presidential Determination on Major Drug Transit or Major Illicit Drug Producing Countries for 2003

Pursuant to section 706(1) of the Foreign Relations Authorization Act, Fiscal Year 2003 (Public Law 107228) (FRAA), which was enacted on September 30, 2002, I hereby identify the following countries as major drug transit or major illicit drug producing countries: Afghanistan, The Bahamas, Bolivia, Brazil, Burma, China, Colombia, Dominican Republic, Ecuador, Guatemala, Haiti, India, Jamaica, Laos, Mexico, Nigeria, Pakistan, Panama, Paraguay, Peru, Thailand, Venezuela, and Vietnam.

The Majors List applies by its terms to countries. The United States Government interprets the term broadly to include entities that exercise autonomy over actions or omissions that could lead to a decision to place them on the list and, subsequently, to determine their eligibility for certification. A country's presence on the Majors List is not necessarily an adverse reflection of its government's counternarcotics efforts or level of cooperation with the United States. Consistent with the statutory definition of a major drug transit or drug producing country set forth in section 481(e)(5) of the Foreign Assistance Act of 1961, as amended (FAA), one of the reasons that major drug transit or drug producing countries are placed on the list is the combination of geographical, commercial, and economic factors that allow drugs to transit or be produced despite the concerned government's most assiduous enforcement measures.

Pursuant to section 706(2)(A) of the FRAA, I hereby designate Burma, Guatemala, and Haiti as countries that have failed demonstrably during the previous 12 months to adhere to their obligations under international counternarcotics agreements and take the measures set forth in section 489(a)(1) of the FAA. Attached to this memorandum are justifications for each of the countries so designated, as required by section 706(2)(B).

I have also determined, in accordance with provisions of section 706(3)(A) of the FRAA, that provision of United States assistance to Guatemala and Haiti in FY 2003 is vital to the national interests of the United States.

Additionally, the alarming increase in the quantity of illegal synthetic drugs entering the United States, especially ecstasy from Europe, is of particular concern. A significant amount of the ecstasy consumed in the United States is manufactured clandestinely in The Netherlands (in 2001, a total of 9.5 million ecstasy tablets were seized in the United States, and the Drug Enforcement Administration believes that the majority of tablets

originated in The Netherlands). We are working closely with Dutch authorities to stop the production and export of ecstasy, which we both regard as a serious threat to our citizens. We expect Dutch authorities to move effectively and measurably in the coming year against the production and export of this drug, including dismantling labs and proceeding against trafficking organizations. Early in the year, we plan to discuss specific steps we can take together to reduce drug trafficking.

Although the United States enjoys an excellent level of bilateral cooperation with Canada, the United States Government is concerned that Canada is a primary source of pseudoephedrine and an increasing source of high potency marijuana, which are exported to the United States. Over the past few years there has been an alarming increase in the amount of pseudoephedrine diverted from Canadian sources to clandestine drug laboratories in the United States, where it is used to make methamphetamine. The Government of Canada, for the most part, has not regulated the sale and distribution of precursor chemicals. The regulations to restrict the availability of pseudoephedrine, which the Government of Canada has just promulgated, should be stronger. Notwithstanding Canada's inadequate control of illicit diversion of precursor chemicals, I commend Canadian law enforcement agencies, which continue to work energetically to support our joint law enforcement efforts.

Under section 706 of the FRAA, you are hereby authorized and directed to submit this memorandum to the Congress, and to publish it in the Federal Register.

GEORGE W. BUSH

ogj.pennnet.com By OGJ editors

HOUSTON, Jan. 31 -- Futures prices for crude oil and refined products rose on the New York Mercantile Exchange Thursday while natural gas slipped slightly but still remained strong at $5.58/Mcf.

Traders said the market benefited from the momentum of the previous session and also from indications that the US appeared to be edging closer to a military strike in Iraq.

European opposition to the US-led effort seemingly abated somewhat Thursday because the leaders of eight European countries signed a letter declaring their support for the US position.

US President George W. Bush and British Prime Minister Tony Blair met Friday to discuss Iraq.

Traders, worried about the war possibility, confirmed that the market awaits US Secretary of State Colin Powell's speech to the United Nations Security Council on Wednesday. Traders also await news regarding a possible resolution of the general strike in Venezuela.

Futures prices The March NYMEX contract for benchmark US light, sweet crude rose by 22¢ to $33.85/bbl Thursday, while the April position gained 25¢ to $32.96/bbl for the same day.

Heating oil for March delivery jumped by 0.92¢ to 98.05¢/gal. Unleaded gasoline for the same month rose by 1.56¢ to 98.69¢/gal.

The March natural gas contract slipped by 4.6¢ to $5.58/Mcf Thursday.

Meanwhile, in London Thursday, North Sea Brent crude oil futures prices also settled higher on the International Petroleum Exchange. IPE March Brent futures settled at $31.21/bbl, up 19¢. The natural gas contract dropped 4.4¢ to the equivalent of $3.22/Mcf on IPE.

The average price for OPEC's basket of seven benchmark crudes gained 28¢ Thursday to $30.58/bbl.

www.morningstar.ca 31 Jan 03(12:22 PM) |  E-mail Article to a Friend

TD May Sell or Close Int'l Waterhouse Units-Report

TORONTO (Reuters) - Unhappy with the performance at some of its discount brokerage units, Toronto-Dominion Bank <TD.TO> may sell or close TD Waterhouse arms in Europe, Asia and Australia, according to a newspaper report. Ed Clark, chief executive at Canada's third largest bank, told the Financial Post he was not prepared to tolerate any more losses at the discount brokerage units outside of North America beyond this year.

Toronto Stocks Down on Weak Golds at Mid-Morning

TORONTO (Reuters) - Toronto stocks slipped at mid-morning Friday, including weaker gold issues, while mounting worry about a possible U.S.-led war against Iraq had market players avoiding placing big bets going into the weekend. About an hour into the session, the Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was down 19.38 points, or 0.3 percent, at 6526.95.

U.S. Blue Chips Rise; Techs Flutter Near Unchanged

NEW YORK (Reuters) - Blue chips climbed Friday after a report showed encouraging growth in manufacturing in the Midwest, but a warning of weak orders from chip equipment giant Applied Materials <AMAT.O> kept a lid on technology shares. Major market gauges erased early losses and headed higher. The technology-loaded Nasdaq Composite <.IXIC> wobbled around the unchanged mark, rising 1 point, or 0.12 percent, to 1,323 after climbing out of negative ground. The blue-chip Dow Jones Industrial average <.DJI> rallied 97 points, or 1.23 percent, to 8,042. The broad Standard & Poor's 500 index <.SPX> added 8 points, or 1.03 percent, to 853.

Canada's Red-Hot Economic Growth Eases in November

OTTAWA (Reuters) - Canada's economy slowed further from its sizzling pace as 2002 drew to a close, with gross domestic product growing just 0.1 percent in November, Statistics Canada said Friday. The latest data confirmed analyst expectations for the month, with the pace of growth easing from October's 0.3 percent gain.

Transalta Reports Loss on Steep One-Time Charges

CALGARY, Alberta (Reuters) - TransAlta <TA.TO>, Canada's biggest investor-owned power generator, said Friday it recorded a fourth-quarter loss because of one-time charges related to maintenance, order cancellations and phased decommissioning of a coal-fired plant. TransAlta, which this week expanded U.S. operations by acquiring a half stake in several power plants from El Paso <EP.N>, lost C$54.3 million ($35.5 million), or 32 Canadian cents a share, down from an year-earlier profit of C$46.5 million, or 27 Canadian cents a share.

Sierra Wireless Shares Drop on Lackluster Guidance

TORONTO (Reuters) - Sierra Wireless <SW.TO> tipped sharply lower Friday, as investors looked beyond better-than-expected profit and revenue to focus on a tepid outlook for the maker of wireless modems. Sierra was down 80 Canadian cents, or 11 percent, at C$6.50 a share just before midday on the Toronto Stock Exchange. In New York, the shares were down 53 cents at $4.23.

Newfoundland Power Reports Lower 2002 Profits

ST. JOHN'S, Newfoundland (Reuters) - Newfoundland Power <FTS.TO> reported slightly lower profits for fiscal 2002 Friday, stressing that last year's results included resolution of a long-standing tax case. The provincial power utility said it turned a profit of C$28.8 million ($18.8 million) in 2002, against C$28.9 million in 2001.

Ryanair Orders Boeing Jets, Swoops on Buzz

DUBLIN (Reuters) - Ryanair leapfrogged back to the top of Europe's budget airline industry Friday with the purchase of smaller rival 'buzz' from KLM and a multi-billion-dollar order for new planes from Boeing The Irish carrier said it had bought buzz for 23.9 million euros ($25.86 million) from KLM Royal Dutch Airlines to gain key routes in France and Germany, adding pressure on already struggling full-service European carriers.

Commerce Dept Delays Canada Wheat Duty Ruling

WASHINGTON (Reuters) - An initial U.S. decision on possible anti-dumping duties against Canadian durum and spring wheat has been delayed from mid-March until May 1, the U.S. Commerce Department said Friday. The agency cited the intricacies of a case that challenges the Canadian Wheat Board's marketing practices for durum and hard red spring wheat. Last year, the Commerce Department launched countervailing and anti-dumping duty investigations. North Dakota wheat farmers have asked the Bush administration to impose combined duties of as much as 37.5 percent against Canada's monopoly grain exporter.

Oil Steady, Awaits Bush, Blair on Iraq Showdown

LONDON (Reuters) - Oil prices took a breather from the week's gains Friday amid indications of a further recovery in oil production from strike-ridden Venezuela. But trading volume was relatively low as dealers were closely monitoring the latest Iraq talks between U.S. and British leaders for any signs of an impending war in Iraq.