Haim,
>>>>> ABU DHABI (March 20, 1999 4:05 p.m. EST nandotimes.com) - Gulf Arab states have agree to cut 1 million barrels per day (bpd) off oil output as of April 1, with Saudi Arabia leading the charge aimed at boosting prices, Gulf oil ministers said here Saturday. <<<<<<
Im no expert in oil, so correct me if Im wrong. It appears that such statement by the ARABs seems to be significant. I fully realise that there has always been doubts that OPEC wont be able to keep an agreement going.
The immediate impact of this news may not be good for the bond market/interest rates/inflation fears.
Recently, I hear often that there is no/little inflation. About 3 weeks ago the lowest price of gas I could find in Maryland was 84 cents, and within these 3 weeks gas has jumped to 90 cents at that same station. Keeping in mind that this just happened recently, the next round of CPI/PPI may not be that great.
Yes, I realise that crude could drop again, but it didnt take the gas stations too long to increase their prices, and they dont cut their prices as fast as they raise them.
What many BULLs fail to realise is that the market is priced perfectly. The reason I feel that way is when there is the slightest bad news the sell-offs have been huge. For example, DELLs news was not really bad, but the market didnt like what they heard and DELL is now about 27% off its highs.
I guess what Im trying to say is that there could be a strong sell-off of the market motivated by minimal bad news.
seeya |
