The Mexican unit of Spanish gas firm Gas Natural said on Tuesday it expected gas sales to rise to 12 million gigacalories (Gcal) in 1999 from 7.0 million Gcal the year before. "The gas we will distribute in 1999 in Mexico will be 12 million Gcal," said Sergio Aranda, president of Gas Natural Mexico, at a news conference. Gas Natural is a subsidiary of Spain's Repsol. Aranda said Gas Natural Mexico would invest $32 million this year and $50 million next year.

Hong Kong gold steady

Hong Kong spot gold opened unchanged on Wednesday from New York's overnight finish in quiet early business. Bullion opened level with New York's Tuesday close at $267.40/90 an ounce and against Hong Kong's previous close of $266.00/50. "There's no action because most traders are hesitant to move without a better sense of direction after the price of gold fell to fresh 20-year lows yesterday," said a dealer at a local securities house. "Sentiment is still bearish in theimmediate future," the dealer added. "But the downside support is seen at $265-266 levels in short term." Spot silver opened at $4.97/5.00 per ounce in Hong Kong. It ended quoted at $4.97/99 in New York on Tuesday. Local gold opened HK$9 higher at HK$2,474 a tael.

US West Coast crude falls

The US West Coast spot crude prices slipped on Tuesday in a quiet market dragged down by falling futures prices, traders said. There were no deals reported for for Alaska North Slope (ANS) crude, which continued to be priced at a $2.00 discount to West Texas Intermediate (WTI) since two deals earlier this month.

Dealers said the market was quiet but could pick up as local refiners moved to take advantage of higher product prices that have been pushed up amid troubles with the 65,000 barrel per day (BPD) fluid catalytic cracker at Chevron's Richmond refinery near San Francisco.

"It's been quiet, but the products side is hopping somargins are better and you'd think people would be running," said one West Coasttrader.

Notional spot prices for ANS slid to $14.23/$14.38 a barrel from last Friday's $14.77/$14.92 as crude oil futures on the New York Mercantile Exchange (NYMEX) fell 50 cents to $16.34 for barrels for July delivery.

The broader market has fallen amid concerns the market has been overheated after a March agreement by major oil producers to cut world output for the third time in a year.