NYMEX crude edges up, awaiting U.S. stock data
Posted by click at 7:47 AM
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oil
Reuters, 05.20.03, 9:31 PM ET
TOKYO, May 21 (Reuters) - NYMEX crude futures ticked up in electronic ACCESS trading on Wednesday following gains in New York, but trade was light with traders awaiting U.S. petroleum stock data.
New front-month July crude stood at $28.50 per barrel at 0110 GMT, up nine cents from Tuesday's close in New York, where it rose 12 cents to $28.41.
Volume for the contract was a modest 724 lots.
The market is supported by expectations that petroleum figures due out later in the day would show just a small increase in fuel supplies.
"The market is seeking direction. Until the U.S. petroleum data is out, traders are unwilling to take positions," a Tokyo-based broker said.
Analysts surveyed by Reuters forecast that the data would show that crude increased by 1.00 million barrels in the week that ended May 16.
Gasoline stocks were expected to post an average increase of 900,000 barrels, the survey showed.
Fears of more attacks following a spate of suicide bombings across the Middle East provided support to the market.
The United States ordered increased vigilance on Tuesday in case suicide bombings that killed 75 people in Morocco and Saudi Arabia presaged attempts to strike on American soil.
In other news, Venezuela expects to cut its oil output in June to comply with a new OPEC quota of 2.923 million barrels per day (bpd) agreed in late April, the president of state oil firm Petroleos de Venezuela told Reuters.
Ali Rodriguez said Venezuela, recovering from an oil strike in December and January, was currently pumping about 3.09 million bpd of crude and exporting 2.91 million bpd of oil.
In products trade, June gasoline was at 85.05 cents per gallon, up 0.03 cent, while June heating oil was at 73.40 cents a gallon, up 0.09 cent.
On the Tokyo Commodity Exchange, benchmark October crude was up 20 yen at 17,250 yen.
New benchmark December gasoline was at 24,090 yen after opening at 24,160 yen, while new benchmark December kerosene was at 27,100 yen after opening at 27,200 yen.
On the Singapore Exchange (SGX), front-month May Middle East crude futures were untraded.
Will foreign reserve recovery bring an end to exchange controls?
<a href=www.vheadline.com>Venezuela's Electronic News
Posted: Tuesday, May 20, 2003
By: Jose Gregorio Pineda & Jose Gabriel Angarita
VenAmCham's Jose Gregorio Pineda (chief economist) and Jose Gabriel Angarita (economist) write: A controversy has recently sprung up about whether a foreign reserve recovery to the US$18-20 billion range might lead to a lifting of exchange controls, or at least a relaxation of them. But economic analysts consider such a scenario very difficult to achieve, in view of the economic conditions currently prevailing in Venezuela.
Central Bank officials have made it clear that the suspension of the exchange controls will occur at some time in the future and that the current system will be replaced by something else. One of the most important constraints on the adoption of any new foreign exchange system is a normalization of the foreign exchange inflow from oil exports, and that depends entirely on the behavior of international oil prices.
Though this could happen in the second half of the year, it will still be necessary to overcome a variety of problems, including excessive macroeconomic and political volatility which encourage capital flight, and the impact a lifting of the exchange and price controls could have on the economic variables, especially when those effects gain strength the longer the controls remain in place.
One of the options the authorities are examining is the introduction of a tax on foreign exchange transactions and a determination of which transactions would be subject thereto, on the understanding that imports of goods needed by national industry to operate would not be taxes; this arrangement would be accompanied by a monitoring of all transactions taking place in the foreign exchange market.
The feasibility of implementing a system of this kind is directly contingent on the favorable expectations it could generate. And expectations would surely improve if the supply of foreign exchange to the private sector in significant amounts and on a steady basis gets under way, and if the political and social conflict is overcome. All that would make it possible to stimulate national production, which is now deeply depressed by the controls, while minimizing their negative impact and speeding up the control system's relaxation or complete elimination.
US Gold Reserve claims exploratory drillings and feasibility studies at Las Brisas goldmine
<a href=www.vheadline.com>Venezuela's Electronic News
Posted: Tuesday, May 20, 2003
By: David Coleman
Spokane (Washington) USA-based Gold Reserve Inc says it has engaged a mining contractor to extract a bulk sample from the Las Brisas goldmine project in southeastern Bolivar State for a large scale test to be conducted by Cominco Engineering Services (CESL) over the next 10-12 weeks, sinking exploratory shafts into hardrock mineralization to extract some 750 tonnes to be processed into a gold-copper concentrate at SGS Lakefield Research Limited in Canada.
- A GLDR press release claims that the CESL test will provide final feasibility level data for metal recovery, sizing, engineering and design of the CESL plant and will provide data for predictable reagent consumption and operating and capital cost estimates for the bankable feasibility study.
Behre Dolbear & Co Inc of Denver, Colorado (USA) is said to be advancing with a mine reserve analysis and long-term production schedule for the Las Brisas gold/copper project ... the study was due in May, but GLDR expanded the study's scope to include separate reserve analysis for the CESL process as well as incorporating a conventional smelter process case. Preliminary pit designs are scheduled to be completed in June with a final report in Q3 2003.
Gold Reserve issued their press release earlier today on Canada's business wire with the usual disclaimer that the release may include both historical information and "forward-looking statements" relating to future results, which involve risks and uncertainties. VHeadline.com is accustomed to treating GLDR press releases with due care, attention and skepticism as a result of their somewhat erratic operating history in Venezuela.