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

To: William JH who wrote (51374)	9/18/1999 5:19:00 PM
From: monu	Respond to of 95453

From Reuters: Gulf Oil Ministers Agree To Keep Curbs RIYADH, Saudi Arabia (Reuters) - Oil ministers from the six-member Gulf Cooperation Council (GCC) Saturday stressed the need to maintain curbs on production until the end of March to cut excess stockpiles and stabilize prices. The ministers also announced at the end of a one-day meeting in Riyadh that they back Saudi Arabia's candidate for OPEC's secretary-general to replace Nigeria's Rulwanu Lukman. ``The GCC oil cooperation committee agreed that price stability requires maintaining the production cut agreement until the end of March 2000 in order to have world stockpiles reach their normal levels to ensure a balance between international supply and demand,' the ministers said in a statement. They pledged to continue adhering to the global production cut agreed in March and expected other producers to honor the deal until it runs out at the end of next March. The meeting came ahead of an OPEC meeting scheduled to be held in Vienna Wednesday to discuss the conditions of the world oil market. OPEC is not expected to tamper with oil production levels at the meeting in Vienna since many producers would like to ensure that the high stock levels which pushed oil prices to below $10 a barrel in February had evaporated. Though oil prices are hovering around 32-month highs and are some $13 above February's lows, oil producers are keen for a sustained period of higher prices to offset the prolonged slump, which took a big bite from their export revenues. Some oil analysts have warned that if producers do not ease their output curbs supplies could be tight when the peak winter demand season kicks in. The ministers said they backed Saudi Arabia's nomination of its OPEC governor, Sulaiman al-Herbish, as secretary-general of the cartel. Saudi Arabia and Iran, which cooperated to bring about the global oil output cut, are competing to fill OPEC's top post. Iran also nominated its OPEC governor, Hossein Kazempour Ardebili, for the job. The OPEC secretary-general must be elected unanimously by the 11 members of the cartel. Technically, he should be apolitical and not push the interests of his country. But by placing a candidate in the post, a member state can gain clout. The minister of oil of the United Arab Emirates -- which currently chairs the GCC -- opened Saturday's meeting with a call to maintain current production levels until March 2000. ``We see the need for strict compliance with the production cuts accord as it is the guarantee for continued balance on the market,' UAE Oil Minister Obaid bin Said al-Nasseri told fellow GCC ministers from OPEC states Kuwait, Qatar and Saudi Arabia and non-OPEC GCC members Bahrain and Oman. ``Published figures indicate that world oil stockpiles remain at high levels...and have only started falling in the last few months,' Nasseri said. The Kuwait oil minister said oil producers wanted better prices.' The market is now starting to stabilize well at $23.50 a barrel (for North Sea Brent). This could be acceptable for this period, but in the coming period we aspire to better prices,' Sheikh Saud Nasser al-Sabah told reporters. Qatar's Oil Minister Abdullah bin Hamad al-Attiyah, recovering from heart surgery, did not attend the GCC talks but is expected at the OPEC meeting in Vienna, Qatari oil sources said.

To: William JH who wrote (51374)	9/18/1999 6:01:00 PM
From: Tommaso	Respond to of 95453

I would like to point out that the Sudan pipeline is now in operation, that the oil is very high quality, that the lifting costs are vey low, and that both Talisman (TLM) and Lundin Oil (LOILY) have a play there. Haven't noticed this being discussed on this thread. I have a substantial position in both those stocks but am holding rather than buying more TLM. Lundin I might consider adding to, since it's not up as much. Very speculative, however. Regular postings on those can be followed on their threads. It's a sort of back door way of cashing in on OPEC's (temporary?) discipline. Edited addition: I notice that Talisman has been discussed on the thread--and denounced by Douglas Fant, whose political ideals I respect. It's probably true that the Sudan government will use its oil revenues to buy military equipment to suppress the southernmost Sudan.

To: William JH who wrote (51374)	9/18/1999 6:51:00 PM
From: CpsOmis	Read Replies (2) \| Respond to of 95453

<And how are they worse off selling 26mmbpd at $25, than selling 28mmbpd at $15, even if these numbers were to come to pass, which I doubt?> For the very reason that we are investing here.....competition will not keep the price at that point forever...Competing oil companies that can not pump oil as cheap as many OPEC companies become profitable, pump oil they wouldn't be at cheaper levels and drive the price back down....But once they have started pumping, discovered the oil etc, much harder to turn them off...only way to do that is flood the market with oil to drive them out of business...boom...bust....etc....