Friede Goldman: FGI (formerly FGII) Message Board

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Gold/Mining/Energy : Friede Goldman: FGI (formerly FGII)

FGI 9.740

+9.4%

1:17 PM EST

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To: Adelantado who wrote (34)	4/9/1999 1:06:00 AM
From: dfloydr	of 75

I do not think the market picking on FGI alone. I put about 50% of my portfolio into various oil related stocks when oil was about 11 - 12/bbl. A week ago I had a nice year's salary in hand. Yesterday, with oil at $16/bbl I was down $2,000. Today most oil stocks started to recover a bit, FGI included. Seems buyers took a breather after the end of the quarter. A day or two ago Venezuela suggested they might only gradually meet their reduced production schedule. This spooked the market. Today Ven. and others are reporting success meeting their new reductions. I think oil is more likely to move up than down from here and after a while investors will gain some confidence that the return to $16-20/bbl oil is real. There have been some reports from OPEC sources that imply that if oil goes much over $18/bbl, their new deal allows them to increase production. I suspect the new cutback deal includes a schedule of production increases worked out by producing country. Whether or not my suspicion is correct, $18 seems to be the price point above which OPEC countries will allow themselves to increase production.

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