<a href=news.ft.com>URL By Carola Hoyos in London Published: April 2 2003 12:04 | Last Updated: April 2 2003 12:04

BP on Wednesday outlined significantly improved refining margins for the first quarter of this year, foreshadowing a profitable quarter for the sector.

In another step away from using production volume as target measurement, the UK-based company, in its quarterly trading statement did not reveal its production levels, as it had done in past updates.

BP's global refining margin improved to $4.52 a barrel, up 64 per cent from the last quarter of 2002 and 176 per cent from a year ago.

Refining margins in the US have been stronger than those in north-west Europe and Singapore, a boost to BP in particular because of the company's relatively wide exposure there.

BP earned $6.77 for every barrel of oil it refined on the US West Coast and $6.14 on the Gulf Coast in the first quarter of this year, which ended on March 31. Refining margins in the Midwest were weaker at $4.14 a barrel, slightly disappointing for BP, whose refineries process 500,000-600,000 barrels a day in Indiana and Ohio, analysts said.

The improvements were largely due to the increase in world oil prices because of a combination of export interruptions in Venezuela, Nigeria and Iraq at a time of historically low commercial reserve stocks, especially in the US.

Jon Rigby, analyst at Commerzbank, said: "It's positive for BP, positive for the sector, but there are a couple of little points that take off some of the gloss."

The disappointments were the reduced margins in BP's chemical business. The company said it expected its chemical margins in the first quarter of this year to be "sharply lower" than the fourth quarter of last year, because of the rising cost of oil, gas and other feedstocks used.

Mr Rigby also pointed out that BP was not fully able to benefit from the increased gas prices in the US because of its exposure in local markets, where prices did not improve as much as the main Henry Hub marker price. BP expects only to realise $2/mcf improvement of the natural gas price, which at Henry Hub is expected to increase by 2.54/mcf. Nevertheless, that realisation would be more in line with marker prices than BP's results at the end of last year.

BP put the price of West Texas Intermediate, the US benchmark crude, at $34.00 a barrel, up $5.69 from the last quarter of 2002, while Brent, the European benchmark crude, was pegged at $31.47 a barrel, up $4.59. Natural gas benchmark prices in the US were $6.53 per mmbtu (million British thermal units), up from $3.99 at the end of last year, while UK prices were 21.28 p/therm, up from 19.09p.

In late morning trade the shares were down 1.1 per cent at 410-3/4p.

Pravda.RU:World:More in detail 13:11 2003-04-02

On Sunday, during his usual radio program, Hugo Chavez, made clear his idea to develop closer ties with Brazil and Argentina and, eventually, be a formal member of the Mercosur block. If Caracas' approach is taken seriously by Brazil and Buenos Aires, the geopolitical structure of Latin America could change dramatically and the world would see the birth of a new strategic power.

"I have already talked about this before: now more than never Venezuela aims to be part of the Mercosur", said Chavez during his weekly speech named "Alo Presidente". Chavez also said that he shared Brazil and Argentina's will to restructure Mercosur and went further when announced that Venezuela was ready to help to reach such objective.

"We have to give Mercosur a political dimension, not only economical, to make it the framework of South America's political union", expressed Chavez. On Venezuela President-s words, powerful South America could contribute to world's balance.

A potential union between Venezuela and Mercosur could be of geopolitical interest for the world. Venezuela is the world's fifth largest oil producer; at the same time, Brazil is the world's largest offshore oil producer and both countries hold State-owned crude monopolies. Therefore, the oil production, pumping, exportation and reserves are controlled by the State.

In Argentina the situation is different. This South American country is an important oil exporter, but the activity has been privatized in 1999. Today, the Spanish group Repsol-YPF controls the national company, but reserves still belong to the State.

If Argentina dares to review oil contracts, it could join Brazil and Venezuela to create the world's largest oil pole, by surpassing Middle East and Russia. Therefore, would play a decisive role to establish prices in the oil industry and become a key energetic factor.

This is only speculation; however it could turn into reality some day. Today, Venezuela is member of the Andean Community of Nations (CAN by its initials in Spanish), together with Bolivia (Mercosur associated member), Colombia, Peru and Ecuador. The Mercosur and the CAN are negotiating since 1995 a formal integration between both blocks. However, until now, talks did not reach positive results. It is of Washington-s interest not to allow further South American integration outside the proposed Free Trade Area of the Americas.

During the Independence wars against the Spanish Kingdom at the beginning of the XIX Century, the Venezuelan Simon Bolivar and the Argentine General Jose de San Martin drove South America to liberation. Both Chavez's self-denominated "Bolivarian Revolution" and the new Brazilian process led by Lula Da Silva, have targeted South American integration, as their main goal on foreign policy. Will Lula and Chavez be the Bolivar and the San Martin of the new millenium? Perhaps they are the last chance for the region.

Hernan Etchaleco PRAVDA.Ru Argentina

<a href=reuters.com>Reuters Wed April 2, 2003 04:34 AM ET By Tom Ashby

LONDON (Reuters) - OPEC exporters cut the cost of the Iraqi war to the West by releasing extra volumes of oil last month to prevent a spike in crude prices, according to a Reuters survey of cartel production. The United States' main allies in the Gulf -- Saudi Arabia and Kuwait -- hiked output dramatically with Riyadh pumping at its highest rate in 21 years, the survey found.

Even U.S. foe Iran lifted supplies having publicly opposed any rise in exports on the grounds that it would signal a green light to Washington for an attack.

"The economic incentive to take advantage of high prices while they lasted proved to be stronger than political motives," said Geoff Pyne, consultant to Sempra Energy Trading.

The 11-member Organization of the Petroleum Exporting Countries pumped an extra 440,000 barrels per day (bpd) in March to reach 27.65 million bpd on average, the survey of industry consultants and officials showed.

Excluding Iraq, where exports were cut just ahead of the war, 10 cartel members with quotas pumped an extra 1.77 million barrels a day to 26.45 million bpd. That is 1.95 million bpd above their self-imposed limits of 24.5 million.

The extra barrels were sorely needed by Western importing countries, which had drawn down commercial stockpiles over the winter due to cold weather and shortages from a strike in Venezuela.

Benchmark Brent crude oil prices slumped 17 percent in March, ending the month at $27.18 per barrel.

SAUDI LEADS GAINS

Saudi Arabia extended recent output gains to average 9.51 million bpd in March, its highest level since October 1981, but still short of its full capacity of 10.5 million bpd.

"Saudi Arabia had the chance to show that they are a reliable supplier to the United States. They did a good job," said George Beranek of Petroleum Finance Co in Washington.

Kuwait tapped surge capacity to reach 2.25 million bpd on average in March, despite the closure of some small fields on the Iraqi border ahead of the war.

OPEC's only Latin American member Venezuela recorded a sharp jump in March as its revolutionary government crushed a rebellion by managers and skilled workers in the state-owned oil company.

Iraq pumped an average of 1.20 million bpd in March, the survey found, starting the month at 2.2 million, but ending at just 300,000 bpd.

Exports stopped in the week leading up to the U.S.-led attack on March 20, and oil pumped for domestic use and smuggling also declined as the invasion gathered steam.

U.S. army engineers said they would take about three months to prepare Iraq's southern oilfields to resume exports, because of booby-traps and neglect.

Iraqi output is likely to fall sharply again in April during a full month that is expected to see only small volumes being pumped from its northern Kirkuk fields.

Nigeria, gripped by political violence ahead of mid-April elections, saw output slashed progressively from the middle of March. Losses reached 800,000 bpd by March 24.

Analysts said the extra output from Saudi and others was filling a hole in world markets left by Venezuela, Iraq and Nigeria, but it could create a surplus in the next few months. "There is plenty of oil around, and in the long run this is bearish," Pyne said.

The OPEC secretariat estimates an average call on OPEC oil this year of 24.65 million bpd, a full three million bpd below March's estimated output.

OPEC Secretary-General Alvaro Silva said earlier this week he was concerned about a glut of oil on world markets, especially in the second quarter when OPEC expects demand for its crude to fall to 23.10 million bpd.

The Reuters survey seeks a best estimate of flows from OPEC countries based on the views of officials, industry monitors and analysts inside and outside member countries.

he Daily Times of Nigeria Gabriel Osu

Another day, another problem. A new week, another new problem. That’s the up and down, on and off system, in which Nigerians have been living for the past few months. The major fear and obstacle that has been ticking along with their heartbeat is the April Polls, which is staring us in the face. It is a required constitutional duty, which must be performed, but the very mention of the polls is pumping up pressures and injecting fears into the system of the masses.

On the one hand, there are daily admonitions, calling on the parents to steer off their children from violence. The aspirants themselves condemn violence and killings in their silent moments of reflection and during their campaign stints.

The clerics have added their voices pleading that the elections should be executed without violence. The fear of the masses is that these pleas seem to have fallen on deaf ears. The country continues to roll downhill like a vehicle without an effective braking system.

The more we all pay lip service pretending we want a smooth and peaceful election, the more the papers report fresh acts of gangsterism, arson and killings. Let’s take it from the basics, opponents posters are defaced or ripped off. And surprisingly some supposedly responsible office holders take responsibility for such reckless acts by claiming that the poles on which the posters were pasted belong to the government. Where do we go from the poster war, when as a nation we cannot tolerate the posters of opponents.

More threatening news. Arms and ammunition are discovered daily along our borders. The only event which warrants the importation of arms is the impending elections. It is now clear that the politicians are determined to fight the election beyond the ballot boxes. For them it is a do or die battle and they are prepared to sacrifice all and destroy everything around in order to become political office holders. The Inspector-General of Police continues to assure the people that his Force is ready to enforce order during the election. But his words do not match his actions.

Put simply, the Police looks helpless, ineffective and ill-equipped. Here is a Force that has not been able to unravel political murders committed under their very nose. This is a Force that does not have its ears to the ground, it only jumps to alert after the act has been committed. Promises are given that the killers would be “fished out soon”. But the people now know that nothing serious follows such promises.

Time blurs the promises and the atrocities wear away until we are rudely awaken to the reality of our insecurity by the killing of another political personality. We have suggested that what the nation needs now is divine intervention, since all our utterances and actions point to an April mayhem. Apart from the self-made political imbroglios, other impediments and dangerous signs are gradually enveloping us.

Take the fuel monster which we thought had been conquered months ago. It has suddenly resurfaced in our midst and those in charge do not appear to have “medicine” to ward it off. On its first menacing reappearance, the NNPC big men calmed our nerves. They told all fuel users that Nigeria had enough of the stuff in store. They said there was no cause to worry. The scarcity and rowdiness subsided. There was a sigh of relief and the NNPC men were justified. We thought they knew their onions. Before we had time to laugh over our ugly experience, fuel scarcity was back with us and this time around, it looks as if it is here to stay.

Gradually, Nigerians have grown not to trust the many utterances of those who lead them. For instance, while NNPC was beating its chest that we have sufficient fuel in the country, the President had a different view. He admitted there was shortage of fuel in the country. He however attributed the shortage to the handiwork of his enemies. The message was echoed the campaign podiums and we went back to business as usual.

Today, it is a different tune we are hearing. The fuel problem we are now told should be attributed to the United States, Iraq and Venezuela. But some of our more discerning citizens are wondering why there is no shortage of fuel in the US, Iraq and Venezuela. So our fate is now tied to the happenings in foreign lands; the only consolation being the assurance that the fuel situation will normalize before the election. This is a clear message to the masses to adjust to more sufferings, higher cost of transportation and general difficulties imposed on them by inefficient and insensitive leadership.

Finally, the threat of the Nigerian Labour Congress (NLC), to start another round of strike over increased pay, is scheduled for April this year. Those who know the NLC do not think the threat is an April Fool joke. The students, parents and the public are so used to the ASUU strike that no one is talking about it again. At this point in time, only divine intervention can see us through all these social and political diversions and distractions.

Rev. Fr. Osu, Director, Social Communications, Lagos Archdiocese.

By Kirby Arnold Herald Writer

OAKLAND, Calif. - No day in Giovanni Carrara's professional life seemed worse than last Wednesday.

The Los Angeles Dodgers, the team he thought finally would be his ticket to the playoffs this year, decided he wasn't even good enough to help them in the regular season.

The Dodgers waived him.

"I never thought that was going to happen," Carrara said. "I was surprised big-time."

Twenty-four hours later he was pinching himself again, in a good way, at where he wound up.

The Seattle Mariners, a team needing a veteran pitcher in middle relief, signed the 35-year-old Carrara back into playoff contention.

"I was really excited because I was going to a team that really has a shot to go to the World Series," said Carrara, a native of Venezuela who is good friends with fellow countrymen Freddy Garcia and Carlos Guillen of the Mariners. "It's the best thing to happen to me."

It could be a good thing for the Mariners, too, based on what they know about the right-hander.

He's a durable pitcher who can work in a variety of roles - middle relief, setup and even start on occasion - and adds further to a clubhouse filled with veterans. This is his 13th professional season, his fourth in the major leagues.

Carrara essentially was squeezed out of a job with the Dodgers. When Kevin Brown returned to the L.A. rotation, it pushed Andy Ashby into the bullpen in middle relief.

"Ashby is doing the job that I was doing and I was the one who paid for it," Carrara said. "But this is a business and I'm with a great team right now."

Carrara is 15-11 lifetime with a 5.15 ERA, but last year with the Dodgers he was 6-3, 3.28. He throws a fastball in the low-90 mph range and keeps hitters honest with a cutter, changeup and curve.

What the Mariners like most is his control. He pitched 176 innings the last two years, striking out 126 and walking just 56.

"He's a strike-thrower and an inning-eater," said Roger Jongewaard, the Mariners' scouting director.

"I've heard nothing but good things about him," pitching coach Bryan Price said. "The way he competes, his resiliency, his ability to throw strikes, he can get left handed and right-handed hitters out. We were pleased that a player like that was available to us."

The Mariners certainly didn't base their signing decision on Carrara's spring training numbers. He pitched 13 innings for the Dodgers with an 8.31 ERA.

"If you go by the numbers, the veteran guys here for the most part wouldn't have made this team," Price said. "Some of them were fairly atrocious."

Two men, especially, knew what the Mariners were getting.

Carrara pitched for Toronto when general manager Pat Gillick was the GM there in the mid-1990s, and Dodgers pitching coach Jim Colburn gave the M's high praise after they dropped him last week. Before he took the L.A. job, Colburn was the Mariners' Pacific Rim scouting director.

"He can pitch every day," Gillick said. "He can start in an emergency, but he's basically going to help us in the middle innings. He's a very durable guy."

And, Carrara is quick to add, he's a very happy guy.

As he suited up for the Mariners' season opener Tuesday afternoon, Carrara couldn't help but gush over his new surroundings.

"This team is like a family, everyone is together," he said. "I've been watching this team for two or three years and you could see that. Hopefully, I can help this team. This team has a chance to win it all."