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.