CRUDE CRUMBLES FURTHER

THE expected big influx of additional crude supplies from Saudi Arabia and other leading producers pushed prices down some 8% in the last two days. Intermediate crude for August delivery fell 68 cents to US$ 29.99 a barrel and a major plunge in price is expected early next week if the Saudis do raise daily output by 500,000 barrels. Indications are that this will happen if prices remain high. To date Saudi Arabia has not actually increased production leading to scepticism about their pledge.