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To: Tomas who wrote (51753)	9/23/1999 9:02:00 PM
From: Tomas	Respond to of 95453

"We would not have approached $10 WTI in early 1999 without large-scale short-selling by the hedge funds. So, even though OPEC may be a passable crisis manager, the subtle maintenance of stable prices may be beyond its grasp because the financial markets have made it possible for hedgers and speculators to exploit the market's inefficiences." ... "The idea of raising production to lower prices and thereby shutting down non-OPEC output to seize market share also poses a problem. In short, OPEC does not have the stomach to wield its power in this way-or it would have by now, At the heart of it, OPEC's current spare capacity is concentrated in only a few countries. As a result, there are too many countries within OPEC that suffer from low prices but cannot necessarily increase production to gain market share." Sarah Emerson, managing director, petroleum, for Energy Security Analysis Inc, Cambridge, Mass in this weeks' Oil & Gas Journal