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: BigBull who wrote (61447)	3/4/2000
From: BigBull	Read Replies (1) of 95453

To all new lurkers and other interested parties: This report from the BBC says it all: news.bbc.co.uk But supply is so squeezed that even this increase might not be enough to ease prices. Peter Gignoux, analyst with Salomon Smith Barney, said: "This market needs to see real barrels, not promises. That's what's going to bring prices down." ------------------------------------------------------------ Any OPEC increase of less than 2 mbpd will result in ongoing shortages. 2.5 mbpd will bring stasis ie. no change in ongoing world wide stocks, thus a price range for crude in the mid twenties to low thirties. 3.0 and above will result in stock builds with prices in the low to mid twenties. My bet is for a rise in production from OPEC of 1.5 to 2.0 mbpd. Everybody knows this will do the following. 1. Take political pressure off OPEC. 2. Keep prices in the high twenties, where OPEC really wants them. All the talk, is now superfluous, OPEC should just announce and get it over with. The big surprise will be DEMAND. It ain't going back to 75 mbpd. Gore gets to deal with $40 oil. Ha Ha Ha! Bet on it! Bull PS. All you OPEC boys are listening, right? <vbg>

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