SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SliderOnTheBlack who wrote (55446)11/26/1999 12:44:00 PM
From: BigBull  Read Replies (2) of 95453
 
Slider, nothing like being late to the party, eh? I think your analyses on what OPEC needs to see before increasing production is quite correct. They can only increase production when "it no longer matters".

1. The psychology of NYMEX pit traders must complete the 180 turn. That process is well under way as lower compliance numbers are being sloughed off in relatively short order.

2. World crude stocks will need to to be removed to near dangerous levels. This process is under way as well. This is a moving target and will be largely determined by "perception".

3. World energy demand must be seen to be increasing to 97 levels. Again, we are on our way. I believe it will exceed 97 levels by a large margin.

As you say, the world will need to plead with OPEC to increase production. At what price, and at what time this will occur is an open question. I believe you are right to conclude that the price will be higher than it is today. When, I don't have a clue. I'll bet it is sooner rather than later. Give me average 25 dollar oil for a year and I'll make a small fortune in da patch.

Final bet:

I'll bet dollars to doughnuts that the day OPEC decides to increase production, we will have heard every single CEO of every single Oil Major declare say they believe high oil prices are sustainable. <VBG> They will say this to justify massive new capex projects. They will bring Wall Street along for the ride and use it as a massive engine of propaganda.

Like Fleetwood Mac says "it all sounds hauntingly familiar" <g>

Bull
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News