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Technology Stocks : EMC How high can it go?
EMC 29.050.0%Sep 15 5:00 PM EST
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To: GVTucker who wrote (11206)9/22/2000 4:47:35 PM
From: Gerald Walls  Read Replies (1) of 17183
 
If Saudi Arabia had excess capacity, they would have used it to keep prices closer to $30. It's in their on self interest. As it stands, last month OPEC couldn't even produce what the quotas were, much less cheat.

At what levels are the non-OPEC countries such as Mexico and Norway producing? Do you think that Mexico's President-elect Fox might by more kindly disposed toward the US than the current administration? At the very least they may start pumping more oil to try to avert the traditional Presidental-transition economic crisis and currency collapse.

About Saudi Arabia, according to the Cato Institute:

cato.org

[snip]

Are these prices a mirage? Well, they're real enough, but they don't reflect underlying realities about the availability of oil. Although the Saudis are producing 8 million barrels a day at a cost of $1.50 a barrel, they were churning out 10 million barrels a day during the Gulf War and have the capacity to go as high as 16 million barrels a day if they wished, at no increase in marginal cost. While it's true that the rest of OPEC is producing at near capacity, OPEC is less a cartel than it is one dominant market leader — Saudi Arabia--and a collection of moderately influential followers.

[snip]
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