Brokers said NYMEX crude volumes traded during Asian hours were low, but the market was very choppy between $29.72 to $30.02 a barrel. "The market in a sense is testing out the OPEC resolve,"John Russel, managing director of Bangkok-based Petroleum Economics Ltd (PEL) Pacific. "Once OPEC shows that it is ready to produce more oil, the price will come off quickly." Instead, OPEC sent confusing signals to the market on Monday. Will they or won't they? Oil has gone on a rollercoaster ride since last Monday,when Saudi Arabia vowed to bring prices down, by raising output by 500,000 barrels-per-day (bpd) if necessary.

Thai PTT in talks with Petronas
State-run Petroleum Authorityof Thailand (PTT) is in talks with Malaysian state oil firm Petroliam Nasional Bhd (Petronas) on a 10 billion baht ($252 million) gas separation joint venture plant in Myanmar, an official said on Monday. Prasert Bunsumpan, president of PTT's gas unit, told Reuters the plant would produce liquefied petroleum gas (LPG) from natural gas and other hydrocarbons from the Yetagun field in the Andaman Sea off the coast of Myanmar. The plant would have a daily production capacity of 300million cubic feet. "We'd like Petronas, which is a partner in the Yetagunfield investment, to take part in this project too," Prasert said. Petronas, Malaysia's largest company, posted a net profit of 12.60 billion ringgit ($3.32 billion) for the year to March 2000, up 85.1 percent from 6.81 billion in the previous year.

PTT said last month it was conducting a feasibility study into the gas-separation plant because it would be more economically wise not to use Yetagun gas, which contains a high portion of propane, just to fuel electricity plants. The LPG produced from the field would be delivered for salein Yangon and Thailand, Prasert said. PTT's production capacity is about one million tonnes perannum, of which 600,000 to 700,000 tonnes is consumed domestically. PTT now has four separation plants situated in the easternprovince of Rayong and the southern province of Surat Thani. A fifth is planned for the Maptapud Industrial Estate alongthe Eastern Seaboard to separate gas from fields in the Gulf of Thailand. Prasert said PTT might invite Myanmar to join the venture.

Sugar up on stockists' buying
Sugar remained in keen demand on the primary sugar market in Delhi on Monday following frantic buying by stockists as well as local parties and closed with good gains. Marketmen said higher upcountry advices also enthused the market sentiment to some extent. The volume of business was good. Sugar ready M-30 and S-30 both improved from Rs 1560-1570 and Rs 1550-1560 to close at Rs 1575-1600 and Rs 1565-1585 a quintal respectively. Sugar mill delivery M-30 and S-30 also looked up from Rs 1415-1465 and Rs 1405-1450 to settle at Rs 1435-1500 and Rs 1425-1455 per quintal respectively. In the mill gate section, Sakoti and Bulandshaher quoted higher at Rs 1475 and Rs 1455 compared the last level of Rs 1455 and Rs 1440 per quintal respectively.

Raw leather prices up
Prices of raw leather of goatsalted and unsalted hardened on the local leather market in Delhi today following increased offtake. In raw leather section, Goat salted and unsalted price of 32X40 per inches improved by Rs 5 each to settle at Rs 60-65 and Rs 85-90 from Rs 55-60 and Rs 80-85 respectively. Following are the raw leather prices per inch in Rs.:Goat salted 30X40 60-65, unsalted 85-90, sheep salted 32X40 inches 125-135 and unsalted 180-210.