Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Razorbak who wrote (87454)	2/16/2001 1:09:16 PM
From: excardog	Read Replies (1) of 95453

Phil Flynn has been a perma bull on crude. Even he looks a little more bearish: Daily Energy Report Phil Flynn - Friday at 9:50 AM Friday 2-16-01 Alan Greenspan say's there is no recession but unleaded gas traders aren't buying it. In fact they are selling it big time. Unleaded gas took the lead lower yesterday in the energy complex and closed 256 points lower. The selloff indicates that traders believe the summer driving season will bring less demand than last year. More bad earnings, more layoff announcements fostered this belief. OPEC may be feeling our pain as they are now indicating that they may not cut production in March. If our economy rolls over, their dream of $25.00 crude may be the pipe variety. The delicate balancing act and question to be answered is just how high can the price of crude be without hurting the economy. And the more complex question is did high oil prices cause the economic slowdown. News flash - the PPI was up a huge 1.1%, core rate up .4% and the blame was put on the high price of crude oil. Today is an important day for the energy complex. If it's all doom and gloom for the economy, look for crude to take the news hard and sell-off further. If the market can hold up to the bad news and make a stand we could see the near term low be put in place today. We're going into a 3-day weekend and shorts with profits will probably take them and lighten up today. This buying pressure may give us a lift. Unleaded is getting to the bargain basement price level as we're headed toward summer and we still have a shortage of refinery capacity. Any glitch in the flow and we'll spike. Positive economic data may be the turn around. It's a tech wreck right now on the charts and it's been ugly but could have been a lot worse. I'm still a believer in our economy and believe the negative attitude has been blown way out of proportion. US corporations have responded very quickly to tighten up their operations in the face of a slowdown and this will bode well when the up tick comes. They'll be profitable quickly and will face the expansion in a much healthier condition. Have a GREAT day and a TERRIFIC weekend. See you back here first thing TUESDAY morning. Markets are closed on Monday for Presidents Day.

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