(Oil Topic) OPIS Alert: "The margin for error is fast disappearing."

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***NYMEX OVERVIEW: COMPLEX LOWER, BUT SEEKING DIRECTION 3/10 (11:45 AM EST) - Overnight trading showed lower numbers across the board for the petroleum complex, and numbers have continued to ease this morning, although their decline is slowing. Sources were attributing the decline to such bearish items as talk from the Mexican Energy Secretary that oil production should be raised by 1-1.5 million b/d and word from IEA that OPEC's compliance level to the current cuts has fallen to 74%. However, the International Energy Agency has also released a report warning that "the margin for error is fast disappearing" and estimated that about 2.3-million b/d of extra crude is needed to restore normal supplies. They have predicted that there could be major difficulties for gasoline supplies when the peak demand season begins. This prediction, coupled with some scattered refinery problems, has put the strength back in gasoline. At presstime, values for the petroleum complex are unchanged to lower. April WTI is down 7cts to $31.62 bbl. No. 2 heating oil has dropped 0.66cts to 75.80cts gal. Gasoline was unchanged at last glance, holding at 98.80cts gal. Stacy Reagan, sreagan@opisnet.com

Copyright 2000, Oil Price Information Service.

-- Wine-O (123@4.com), March 10, 2000

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