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

To: Gary Burton who wrote (53520)	10/25/1999 7:33:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 95453

Gary, I'm still waiting for some feedback on that weekly OSX chart if you've got the time.http://www.iqc.com/chart/default.asp?w=600&period=120&chart=candle&chart1=bb&i0=1&i1=6&i2=3&i3=7&s=linear&symbol=$osx&time=week Bullish case for brent crude! go.com Top Analyst Sees Stiff Crude Price Hikes This Winter 09:38 a.m. Oct 25, 1999 Eastern LAKEWOOD, N.J., Oct. 25 /PRNewswire/ -- One of the world's most highly regarded and influential oil gurus, Phil Verleger, revealed before a packed house at the OPIS '99 National Supply Summit in Phoenix, that he believes the values for Brent crude are headed back to the $24-$30 bbl level as the world faces its tightest supply picture since the Persian Gulf War. Verleger, president of PKVerleger LLC, and a member of the National Petroleum Council, warned that the next two calendar quarters could see demand for oil exceed supply by more than 1-million b/d. His comments come on the heels of OPEC's Saudi Oil Minister Ali Naimi complaining that world stocks are still too cumbersome and need to be shaved. Verleger made the keynote address at the OPIS '99 National Supply Summit, October 21 and 22, before a large group of several hundred top traders and marketers stating that higher prices could last "two to three years." He was also critical of big oil for losing touch with its customers. If such projections are on the money, inventories will drop below record low levels and benchmark Brent values could surpass $24 bbl before year's end, with $30 bbl possible for first quarter 2000. A colder-than-normal winter in the North Atlantic would only drain supplies more. Despite the lofty price predictions, Verleger does not paint a pretty picture for U.S. major and independent refiners. In a sometimes blistering critique, he stressed that oil companies have embarked on a journey, "from integration to insignificance" thanks mostly to an industry failure in meeting its customers' needs. Among his observations and projections: -- The next few years will see half of the firms who currently market gasoline disappear. The world, "has become commoditized, and the trend seems to be irreversible", he told marketers and traders. -- Survivors in this new commoditized economy will be companies like Wal-Mart, Costco, and Albertson's-firms that have discovered, "economies of scope". The multiple sales strategies of these firms is in great part generated by their own fears of losing business to the Internet, the principal factor in commoditizing goods throughout the world. -- The oil industry has been blinded by a narrow preoccupation with specific products and values of reserves. Top oil executives, "don't get excited by the customer in his own backyard -- they get excited about finding oil in Saudi Arabia," Verleger noted. -- Because of the failure to listen to their customers, major oil companies lost the airlines as customers in the 1980's and they appear on the verge of losing the largest and most profitable share of the oil market to the growing chains of hypermarkets, the Wal-Marts, Costco, and Albertson's. -- Integrated oil companies have become like farmers -- they produce a commodity and sell it to others (like Wal-Mart) who deliver to consumers. This trend could accelerate as existing pipelines are altered or redirected, further opening up supply. -- Detroit, and not oil centers, will dictate the type of fuel required for new cars, using the EPA as its agent. The OPIS '99 National Supply Summit was hosted by OPIS Energy Group, the nation's leading provider of U.S. petroleum prices and news. This top conference drew the elite of the industry, including Mobil, Texaco, Sunoco, Citgo, Equiva Trading, Morgan Stanley, America West Airlines and Dean Witter. To follow more stories like this one, and the complete petroleum supply and pricing picture throughout the year, refer to the OPIS Newsletter at opisnet.com. For a complete set of cassette tapes on all topics from the OPIS '99 National Supply Summit, e-mail, bgebhard@opisnet.com. SOURCE Opis Energy Group