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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: articwarrior who wrote (47852)	7/13/1999 3:07:00 PM
From: ChanceIs	Respond to of 95453

ArticWarrior - Thanks for the lead on the book. I found another interesting one on oil trading at the Barnes & Noble Website: Fundamentals of Petroleum Trading Hossein Razavi and Fereidun Fesharaki Our Price: $69.50 Available: Ships 1-2 weeks Format: Hardcover, 232pp. ISBN: 0275939200 Publisher: Greenwood Publishing Group, Incorporated Pub. Date: August 1991 From The Publisher: Razavi and Fesharaki provide a detailed look at the workings of and issues surrounding today's oil trading market as applied to all parties involved in the production, distribution, and consumption of petroleum. They present a complete description of petroleum spot markets, futures, and options trading, as well as their interlinkages with contract sales, and challenge the generally accepted view that spot and futures trading have wrested the power of price setting away from OPEC. I plan to get this book, but I would put these questions to the thread in the mean time: 1) What is the correlation between the cessation of contract trading and the actual delivery of a contract? In the recent oil case, we had OPEC "cutting" effective April 1. However the April contracts stopped trading around March 20. I suspect that effectively there was no cut in April production because the contracts had already been settled. April cuts would have effected the May contract. It takes about one month for oil to reach the US by tanker, hence the cuts really wouldn't bite until early July. This is what we are seeing with the recent API. Is this analysis correct? 2) OPEC stands accused of dumping, but if Simmons is correct regarding "paper barrels", the New York traders are controlling the price, not Mexico or SA. If the NYMEX is only going to offer $10 a barrel, did SA commit a crime by agreeing to sell at this price. Hence a chicken and egg issue. Comments please.