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: Post_Patrol who wrote (54332)	11/10/1999 7:54:00 AM
From: SliderOnTheBlack	Read Replies (2) of 95453

OPEC must extend cuts - they have no choice...period. Crude has near "titanium" strength underlying fundamentals imho. Global demand growth is very, very likely to surprise to the upside. Supply drawdowns are very, very likely to surprise to the upside. But, most importantly; OPEC has no decision to debate... Their only options have been dictated to them by the Street & the Crude Futures Traders. Look at the volatility that crude prices have seen lately; off of even the slightest negative spin doctoring. If OPEC were to actually announce revised production quota's - the over-reactive speculation in crude futures to the short side; would virtually guarantee a break to $16-$18 crude. OPEC can only open the spigots; when the world is brought to its knees via sustained $28+ Crude, or a speculative bubble spike through $30. Both which I feel we WILL see... The only way OPEC can increase production; is in response from a Global Economic outcry; in crying "uncle" to crude prices and its resulting inflationary pressures. It's not a bad time to be looking at crude (vs. nat gas) leveraged E&P's here. VPI & NEV come to mind among others... CNBC; Bob Olstein - who is sharp as a tack; had some nice things to say about RDC in reference to their secondary. Spoke to the underlying fundamentals and indirectly referenced the necessity from depletion "ALONE" for an expansion in cap ex spending and drilling activity.... don't under-estimate this concept (depletion). Post Patrol ???? C'Mon... ole' Gary has both "saved" and made me money - I've got nothing but kudo's for the guy. By the way; concerning those long gaps between your appearances & posts... I much prefer those "gaps" to the appearances... (VBG) ~

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