Adamant: Hardest metal
Tuesday, March 25, 2003

OIL UPDATE: Nymex Extends Gains On War Uncertainty

DOW JONES NEWSWIRES Tuesday March 25, 2:20 PM By Irene Kwek Of DOW JONES NEWSWIRES

SINGAPORE (Dow Jones)--Crude oil futures continued to extend gains in after-hours trading Tuesday, as growing concerns of a prolonged war against Iraq and worries over Nigerian oil output helped to lift the entire petroleum complex.

Front-month May crude futures headed higher in Access trade during most of the Asia day, and hit a session high at $29.05 a barrel. At 0600 GMT, Nymex May was up 34 cents at $29.00/bbl after surging 6.5% during floor trade Monday.

"It's relatively bullish with the fundamental underlying strength coming from Nigeria and the Iraq (war)," a broker said, adding that he expected the buying from London and U.S. traders to continue later in the day.

Initial resistance for the front-month contract was at $29.50/bbl, and then at the 200-day moving average of $29.63/bbl, the broker added.

"The realization set in that this would be a longer war than the enthusiasm showed in the market last week," a U.S.-based broker said.

The gains by crude helped to lift Asian oil product prices. Singapore fuel oil cash prices were pegged at $170-$171 a metric ton from $164.50/ton Monday. Fuel oil swaps climbed to $161.25-$164.50/ton from $157.50/ton Monday.

Open-spec naphtha outright prices were pegged at $281-$283/ton for second-half May, cost-and-freight Japan, compared with $273.50/ton done Tuesday.

Rally Likely To Continue

Looking ahead, analysts and traders expect Nymex crude futures to retest the key $30/bbl level.

"It will probably trade back up and go toward. $30/bbl... It's up almost $2/bbl (since Friday), and it may even go up to $30/bbl tomorrow," the U.S.-based broker said.

Moreover, a flight to quality from investors due to fears of a long war will help support the bullish trend.

"There are signs of the flow of money out of stocks and into gold, commodities. We would see some amount of buying in crude in line with the flight to quality," the broker added.

"It's going to be on the upside because it looks like the war is going to keep dragging on longer than what people have been expecting," echoed a Merrill Lynch energy analyst.

"But the other thing that could keep oil prices in check is that we are not witnessing any destruction of Iraqi oil production facilities and the disruption of oil exports from the Persian Gulf," the analyst noted.

In a report distributed Monday, Merrill Lynch said it adjusted its 30-day range for crude prices downwards to $26.25-$33/bbl "to account for the lack of debilitating supply impact since the onset of hostilities."

Nigerian Oil Output

Further fueling the rally, problems in Nigeria lent further support to the bullish sentiment as ethnic violence has sharply curtailed the country's oil output by as much as 40%. Shell Development Petroleum, a unit of Royal Dutch/Shell (RD) Monday said it shut in 370,000 bbls a day in crude output.

Nigeria was the fifth-largest exporter of crude oil to the U.S. in January, and its crude is valued for high gasoline yields.

May gasoline futures staged a 1.07 cent gain during Access trade to 89.99 cents/gallon at 0542 GMT, underscoring concerns of tight gasoline supplies as the U.S. moves towards its driving season.

In its report, Merrill Lynch noted that the partial outage in Nigerian production highlighted limited spare production capacity among the Organization of Petroleum Exporting Countries, which have been strained by strikes in Venezuela earlier in the year and Iraq, starting last week.

The disruption in Iraq and Nigerian oil output has taken about 3 million barrels/day out of the market. Saudi Arabia and other producers have made up that shortfall, but their ability to absorb shocks is almost exhausted as they are already producing beyond their sustainable capacity.

Despite the reduction in oil output from both Iraq and Nigeria, market participants said they didn't expect a release of stocks from strategic reserves.

"I don't see any sell off" or the market pricing in such a release, said one broker. "If anything, the market is anticipating very little out of the strategic reserves."

The U.S. administration said it is watching Nigeria's oil supply disruption and the broader oil market closely, a U.S. Department of Energy spokesman said late Monday.

The Bush administration maintains that the U.S. hasn't experienced an energy supply disruption severe enough to warrant emergency release of crude oil from the U.S. Strategic Petroleum Reserve, the spokesman said.

On the Iraq war front, market participants are taking account of reports that the oil fields in southern Iraq aren't as secure as assumed last week. Fighting around burning oil wells in the Rumaila oil fields has driven out civilian firefighters, days after they were secured by coalition forces, an official said Monday.

Meanwhile, the Kirkuk oil fields in the Northern remain under Iraqi government control.

-By Irene Kwek, Dow Jones Newswires; +65-64154062; irene.kwek@dowjones.com

Case Against Chavez Sent to U.N. Court

"Washington lost" MADRID -- A Spanish judge threw out a terrorism case against Venezuelan President Hugo Chavez because he has immunity from Spanish prosecution, but the case was forwarded to the International Criminal Court in The Hague.

A group of Spanish citizens brought the case against Chavez, alleging terrorism and crimes against humanity based on violence during a protest in Venezuela last April in which three Spaniards were injured and one died. The case also refers to injuries suffered by two Spaniards in Venezuela on Nov. 4. The allegations against Chavez were presented by lawyers acting for some of the families of at least 19 people who were shot dead during a large anti-government march April 11 that came close to the presidential palace in Caracas, the capital.

A little English put on ballplayers

Language lessons big hit at Texas Rangers camp Maggie Galehouse The Arizona Republic Mar. 25, 2003 12:00 AM

Baseball is a breeze for minor-league player Freiddy Dominguez, but buying groceries in English really makes him sweat. Dominguez is one of 38 Spanish-speaking players in the Texas Rangers farm system. Many arrived from Venezuela, Puerto Rico and the Dominican Republic with just a few English words. But the team, which is training in Surprise, has developed several programs to speed their transition into a new culture. One is a computer program that pumps the Spanish speakers with words and phrases they need to know. Can I have some toilet paper, please? says a voice from the laptop that Dominguez is using. Dominguez, 22, a catcher from Venezuela, repeats the sentence slowly, then listens to his own voice played back. The Spanish translation, Me pueda dar papel de baƱo, materializes at the bottom of the computer screen. "This is not a traditional way of learning English," said Carlos Subero, Latin American liaison and field manager for the Class A Clinton Lumberkings, a minor-league Rangers team in Iowa. Dubbed "personal language trainer," the software familiarizes players with words and sentences surrounding everyday activities, including going to the doctor, banking and shopping. Lessons take place in a makeshift classroom off to one side of the Surprise Stadium. The narrow space is jammed with desks, four laptops and headsets. Many of the younger players, some of whom arrive when they're 16, have only a fourth-, fifth- or sixth-grade education, Subero explained. "They're not used to being in school, and their English ranges from none to very good," he said. The lessons don't stop there. The team also runs cultural programs in the players' home countries that teach them how to order food at a restaurant and open a bank account. "By law, the guys have to make $850 a month starting out," said John Lombardo, director of minor-league operations for the Rangers, "but a lot of them have signing bonuses that range from $5,000 to $1 million." Many send part of their paychecks home, so money management is crucial, he said. In the evenings, the players give their English lessons a workout by going out to a restaurant or watching a movie. That way, they're forced to use their skills in a public setting. Many of the seasoned players take the new recruits under their wing. "Guys that are more advanced in the system are remembering what was done for them and are happily volunteering to take the younger guys out at night," Lombardo said. "It's becoming a mentoring program." Not surprising, the longer a player stays with the team, the better his English becomes. Luis Rodriguez, 21, a pitcher from Venezuela, is in his fifth year with the Rangers. His English is solid. "I was scared at first, going to the mall or the grocery store, but you have to break your fear," said Rodriguez, punching his right fist into his left hand. Rodriguez watches sports or The Cosby Show with closed captions in English, so he can see the words as he hears them. Like most things, though, language acquisition is a step-by-step process. "Every day, I try to learn one word," said Juan Carlos Senreiso, 21, from the Dominican Republic. What's the latest addition to his lexicon? "Dishwasher," the outfielder said.

Reach the reporter at maggie.galehouse@arizonarepublic.com or (602) 444-6919.

Marine cheers pro baseball player

Building friendships... Submitted by: MCB Camp Butler Story Identification Number: 2003324183353 Story by Sgt. John Sayas

CAMP KINSER, Okinawa, Japan(March 25, 2003) -- In the United States, a baseball fan's desire to meet their favorite Major League Baseball players is not always easy. To get an autograph from "big name" players like Barry Bonds, Derek Jeter or Ken Griffey, Jr., fans might have to fight through hordes of people.

For fans of the Nippon Professional Baseball League, it is equally hard to meet their favorite players.

But for Lt. Col. Brent A. Norris, assistant chief of staff, Comptroller, 3rd Force Service Support Group, getting an autograph is no big deal because he knows some of the players firsthand.

Norris has always been a big baseball fan, and since he grew up in Lexington, Ky., he became a Cincinnati Reds fan. That love for baseball followed him here, and eventually took him to a spring training game here in Okinawa. His only introduction to Japanese baseball at the time was through a movie called "Mr. Baseball" which featured the Chunichi Dragons.

"I love the game. Baseball has always been my favorite sport so I certainly love catching a good baseball game," Norris said.

Norris, who began his tour here in 1998, initially didn't follow any particular team until he met Yakult Swallows outfielder Alex Ramirez during one of the team's spring training sessions on Okinawa two years ago.

As an ordinary baseball fan in the stands, Norris and his two children were watching players as they warmed up when Ramirez, a former player of the Cleveland Indians and Pittsburgh Pirates, looked up at the stands and gestured at the crowd.

"He looked up at us and waved to us," Norris recalled. "My daughter asked who that was, and I said I think its Alex Ramirez. He waved to us and said how are you doing, and we just started talking."

Later that day after the game, Norris and Ramirez met again when Yakult Swallows players visited the base to get a taste of Marine life. Norris was one of the Marines hosting the players when they visited, and immediately recognized Ramirez from their earlier conversation in the stands.

Eventually, Norris invited Ramirez to his home for dinner.

"We struck up a conversation and have developed a relationship ever since," Norris said.

Ramirez doesn't know too much about military, but has developed a good friendship with the Norris family while learning more about each other's lives.

This year was their third time meeting at the Norris' home. During his latest visit, Ramirez brought his wife, Liz, and two international players, Kevin Hodges and Todd Betts, to enjoy the occasion. Hodges, a Houston native, is a former Seattle Mariners pitcher and Betts, a Toronto, Canada native, is beginning his first season after playing in the minor leagues the last few years.

"It's a cool thing for me," Norris said. "Anytime he is here, and wants to unwind, he has a place to stay."

Although the two have different careers, they have shared a lot in common. Their careers sometimes take them away from their families, and have taken them to many places far from home.

One thing the players have realized is that one cannot do without the other as baseball provides the entertainment for the millions of fans around the world, while the military fights for the freedoms and liberty that America has today.

"Baseball is just a game," said Ramirez, who is a Miranda, Venezuela native who came to the Yakult Swallows in search of expanding his career opportunities.

Commenting on the thought of war and the service that the military provided to the U.S. he said, "You sometimes don't know when you are coming back--it is not a game."

Oil Prices Tick Higher

<a href=news.moneycentral.msn.com>Reuter March 25, 2003 00:11:00 AM ET

SINGAPORE (Reuters) - Oil prices ticked higher on Tuesday, bouncing from last week's four-month lows with traders focused on resistance to U.S. invasion forces in Iraq and tribal violence in Nigeria which has cut its crude output by 40 percent.

U.S. light crude was up 34 cents to $29.00 a barrel at 11:50 p.m. EST Monday, extending Monday's $1.75 jump. London's Brent crude had climbed 31 cents to $26.40 a barrel.

U.S. and British forces faced tough resistance from Iraqi fighters as they opened an assault on Republican Guards defending approaches to Baghdad in a campaign aimed to oust President Saddam Hussein.

Oil fell almost 30 percent last week as traders factored in a short war with little damage to Iraq's oil industry, which pumped 2.5 million barrels per day (bpd) before the U.S.-led assault.

Traders were also relieved that crude supplies from other Gulf producers flowed unhampered by hostilities. The Gulf region pumps about 40 percent of global exports.

But confidence in a quick war waned after the weekend as U.S. and British forces suffered their heaviest casualties so far.

``The market is responding to difficulties in the Iraq campaign. It had priced in the perfect war and had gone so far as building in a victory discount, which is now being eroded,'' Sydney-based oil analyst Simon Games-Thomas said.

NIGERIA STIRS VENEZUELA MEMORIES

A series of bloody clashes in Nigeria forced the closure of about 800,000 bpd of the 2.2 million bpd produced by Western oil firms in Africa's biggest producer.

Ethnic groups in the oil-rich Niger Delta are battling for a greater share of the country's oil wealth.

Nigeria is one of the top six oil exporters to the United States, where fuel supplies have been running at 27-year lows partly due to a Venezuelan general strike, all but cutting off oil exports from the South American country.

Nigeria sent more than 560,000 bpd to U.S. shores last year.

Venezuela, the world's fifth biggest crude exporter before the strike began in early December, supplied about 13 percent of U.S. oil imports. Venezuela's output has been slowly increasing since early February.

The Nigerian outage provided the oil market with an uncomfortable reminder of the Venezuelan strike, David Thurtell, commodities strategist at Commonwealth Bank in Sydney, said.

``Nigeria is pretty volatile at the best of times, but people probably said the same about Venezuela four months ago. If Nigeria is down to one million bpd for a month, supplies will tighten up again,'' Thurtell said.

The Organization of the Petroleum Exporting Countries could make up any shortfall in supply from Nigeria, OPEC's fifth largest producer, cartel president, Abdullah al-Attiyah, said on Monday.

The group has also pledged to make up for the disruption to Iraqi exports.

But OPEC officials have said there is no shortage of oil in world markets so there is no need to increase output. Oil demand usually drops in the second quarter of the year when northern hemisphere winter demand recedes.