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

To: Tomas who wrote (51252)	9/16/1999 9:41:00 AM
From: Tomas	Respond to of 95453

Market factors behind 1998 oil price fall - WorldOil Editorial, September The Petroleum Industry Research Foundation, Inc. (PIRINC) has published an informative, 11-page review of the cause of the 1998 oil price collapse, which says market factors, not price "dumping" caused the problem. The report says that several separate events, with virtually a once in "never" chance of occurring simultaneously, happened in 1998. And this was on top of the fact that the general climate existing in late fourth quarter of 1997 called for substantial and continuing growth in world petroleum demand. PIRINC's six separate events - many interconnected and nearly all unexpected - which drove down oil prices are: 1. The financial crisis and recession in Asia 2. OPEC's decision to raise production by 700,000 bopd in response to late-1997 indications that more output was needed to meet demand growth 3. Unusually warm weather through the 1997-1998 winter in North America, Europe and Asia 4. The Russian bond default which cut internal demand and increased its 1998 exports 5. The decision by China to cut imports in fourth quarter 1998, and 6. Sustained large increase in U.S.-authorized Iraqi exports in 1998, into 1999.