Message From: opisalerts@opisnet.com Date: Tue, ***VENEZUELAN REFINERY PROBLEM PUSHES REFINED PRODUCTS UP FURTHER 1/18 - - Reports of a major problem with one of the largest catcrackers in the western hemisphere has sent refined products futures higher this morning, in some cases helping them surpass post Gulf War highs. Industry reports say that Venezuela has suffered a mechanical problem at its huge 635,000 b/d Amuay Bay refinery and the unit may be lost for as long as three weeks. The 110,000 b/d catcracker is Venezuela's largest producer of finished gasoline, and traditionally accounts for a number of cargoes each month to the U.S. East Coast. Gasoline futures were up some 2.03cts gal just after midday, with about a penny of the increase attributed to the refinery news. February no-lead stood at 76.55cts gal. While the unit's downtime shouldn't have much impact on distillate production, the news helped galvanize an already strong No. 2 oil futures market. Just after Noon EST, February No. 2 oil futures were up 2.345cts gal to 76.15cts gal. - Tom Kloza, tkloza@opisnet.com

-- B. Blakely (LeeeeeeB@webtv.net), January 18, 2000

Answers

Here's the Reuters story on this:

Here is some more cheerful news......

Tuesday January 18, 3:08 pm Eastern Time

Venezuela issues force majeure after cracker down

CARACAS, Jan 18 (Reuters) - Venezuelan state oil company Petroleos de Venezuela declared a force majeure on oil exports after a huge catalytic cracker was shut down unexpectedly, regional traders said.

The notice was served to clients Tuesday afternoon after the 108,000 barrel per day (bpd) cracker at the Amuay refinery was shut down on Sunday night after a system failure.

One trader said the unit would remain shut for 20-30 days, while another said it would shut for 35 days. It produces about 70,000 bpd of high octane gasoline for export and also some gas oil.

Venezuela is the largest supplier of crude oil and refined products to the United States, and the Amuay cracker is the country's largest such unit.

The unit normally produces several types of export gasoline, particularly popular on the the U.S. Atlantic coast, including RFG, 87 octane unleaded and 95 octane.

-- Robert Waldrop (rmwj@soonernet.com), January 19, 2000.