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

To: Captain James T. Kirk who wrote (50653)	9/8/1999 8:29:00 PM
From: Tommaso	Respond to of 95453

As long as the expporting countries can maintain even a loosely controlled cartel, prices should stay firm. Unfortunately for oil investors, the "prisoner's dilemma" mentality is always at work, with short-term profits by overproduction a temptation. With the US going out of its way to behave in friendly fashion toward many Muslim countries (excluding Iraq, Sudan, Libya), a certain easiness in pricing for gasoholic Americans seems assured. Yet with only another 25 cents or so at the pump, which is hardly an impoverishing rate for most consumers, prices of $30 a barrel and maybe more can be supported. There are too many political and economic and geological variables to make confidant predictions about the price of oil, but even a modest degree of self-interest should dictate cooperation among oil producers in restraining output. Oil and stocks affected by the price of oil seem to me the safest bet in a financial system full of distortions, especially the paper bubble in th US. Try putting Amazon.Com stock certificates in the tank of your car. At some point the flood of dollars that has been set loose by America's irresponsible trade deficits may pull the dollar down against some other currencies. And whatever the real price of oil at the time (and against what standard are we to measure that?), the dollar-denominated price should rise.