TEXACO FILING ADDS UNCERTAINTY IN OIL MARKET
  U.S. oil traders said Texaco Inc's
  filing for protection under the Chapter 11 bankruptcy code is
  adding uncertainty to an already skittish oil market, but
  opinions are divided on the impact to the market.
      "The filing is holding up wet barrel trading today," said
  one trader. "Everyone is talking about it, assessing their
  company's situations in relation to Texaco," he added.
       Some traders said companies that deal with Texaco are
  concerned about whether they will receive payment or supplies
  under the bankruptcy filing.
      However, others were less worried. "The first paid will be
  the trading community and those connected with Texaco in the
  shipping industry," one New York trader said.
      "If Texaco doesn't get crude supplies it can't run its
  refineries, so its other assets would not be worth anything,"
  he added.
      Texaco filed for protection under Chapter 11 of the U.S.
  bankruptcy code yesterday after failing to reach a settlement
  with Pennzoil on an 11 billion dlrs court award for illegally
  interferring with Pennzoil's proposed purchase of Getty Oil Co.
      However, others were less worried. "The first paid will be
  the trading community and those connected with Texaco in the
  shipping industry," one New York trader said.
      "If Texaco doesn't get crude supplies it can't run its
  refineries, so its other assets would not be worth anything,"
  he added.
      Texaco filed for protection under Chapter 11 of the U.S.
  bankruptcy code yesterday after failing to reach a settlement
  with Pennzoil on an 11 billion dlrs court award for illegally
  interferring with Pennzoil's proposed purchase of Getty Oil Co.
      "There is some reluctance to trade with Texaco but no great
  change," said another trader, adding that traders are tending
  toward prudence in their dealings with the company.
      Traders are assessing whether to require cash prepayment or
  letters of credit, or to continue to trade as usual with Texaco
  on an open line basis, he said.
      Another trader, however, described today's activity as
  business as usual, adding that traders feel more secure because
  no liens can be put on Texaco's assets while it is in
  bankruptcy.
      Traders said there was no apparent effect of the Texaco
  filing on crude futures trading although they said the exchange
  might lower Texaco's position limit and require higher margins
  for Texaco's trades.
      New York Mercantile Exchange President Rosemary McFadden
  declined to comment on Texaco's futures trading, saying that is
  is proprietary information. McFadden did say, however, that as
  a matter of procedure, it is possible the exchange can lower
  allowable position limits or increase margin requirements for
  companies that are in financial trouble.
  

