A study group said the United States 
should increase its strategic petroleum reserve to one mln 
barrels as one way to deal with the present and future impact 
of low oil prices on the domestic oil industry. 
    U.S. policy now is to raise the strategic reserve to 750 
mln barrels, from its present 500 mln, to help protect the 
economy from an overseas embargo or a sharp price rise. 
    The Aspen Institute for Humanistic Studies, a private 
group, also called for new research for oil exploration and 
development techniques. 
    It predicted prices would remain at about 15-18 dlrs a 
barrel for several years and then rise to the mid 20s, with 
imports at about 30 pct of U.S. consumption. 
    The study cited two basic policy paths for the nation: to 
protect the U.S. industry through an import fee or other such 
device or to accept the full economic benefits of cheap oil. 
    But the group did not strongly back either option, saying 
there were benefits and drawbacks to both. 
    It said instead that such moves as increasing oil reserves 
and more exploration and development research would help to 
guard against or mitigate the risks of increased imports. 
 Reuter

Unocal Corp's Union Oil Co said it 
lowered its posted prices for crude oil one to 1.50 dlrs a 
barrel in the eastern region of the U.S., effective Feb 26. 
    Union said a 1.50 dlrs cut brings its posted price for the 
U.S. benchmark grade, West Texas Intermediate, to 16 dlrs. 
Louisiana Sweet also was lowered 1.50 dlrs to 16.35 dlrs, the 
company said. 
    No changes were made in Union's posted prices for West 
Coast grades of crude oil, the company said. 
 Reuter

The New York Mercantile Exchange set 
April one for the debut of a new procedure in the energy 
complex that will increase the use of energy futures worldwide. 
     On April one, NYMEX will allow oil traders that do not 
hold a futures position to initiate, after the exchange closes, 
a transaction that can subsequently be hedged in the futures 
market, according to an exchange spokeswoman. 
    "This will change the way oil is transacted in the real 
world," said said Thomas McKiernan, McKiernan and Co chairman. 
    Foreign traders will be able to hedge trades against NYMEX 
prices before the exchange opens and negotiate prices at a 
differential to NYMEX prices, McKiernan explained. 
     The expanded program "will serve the industry because the 
oil market does not close when NYMEX does," said Frank Capozza, 
secretary of Century Resources Inc. 
     The rule change, which has already taken effect for 
platinum futures on NYMEX, is expected to increase the open 
interest and liquidity in U.S. energy futures, according to 
traders and analysts. 
    Currently, at least one trader in this transaction, called 
an exchange for physical or EFP, must hold a futures position 
before entering into the transaction. 
    Under the new arrangement, neither party has to hold a 
futures position before entering into an EFP and one or both 
parties can offset their cash transaction with a futures 
contract the next day, according to exchange officials. 
    When NYMEX announced its proposed rule change in December, 
NYMEX President Rosemary McFadden, said, "Expansion of the EFP 
provision will add to globalization of the energy markets by 
providing for, in effect, 24-hour trading." 
    The Commodity Futures Trading Commission approved the rule 
change in February, according to a CFTC spokeswoman. 
 Reuter