High Tolerance Plasticity Message Board

STOCKTALK

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.

Politics : High Tolerance Plasticity

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Think4Yourself who wrote (2208)	3/22/2001 10:35:48 AM
From: ItsAllCyclical	Read Replies (2) of 23153

JPQ - re: oil prices. I think you have it exactly backwards. Yes, OPEC is fearful of $12 oil again, but right now they have much more spare capacity than they did 12 months ago. Every day that goes by brings more worldwide spare capacity back on line imho. They are cutting more because they know their members are not adhering to their quotas as well (imho). I'm betting that individual members will be somewhat complacent, over-confident about what they've accomplished the last 2 years. Also the more they cut production the more they slow down world growth. They really are in a catch 22-scenario imho. At these oil prices they are still wildly profitable. It'll take oil prices going sub $20 again before alarm bells ring in the ME. I would say it's much easier to maintain quotas when there's strong economic growth and prices are trending up from low levels vs trending down from high levels. Whether or not the pundits are right or not remains to be seen, but if the world econ growth continues to slow you'll hear predictions of $15-18 oil again. It won't matter if they're right or wrong. Those types of predictions could spark a huge selloff in all things oily. BWDIK

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next