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

To: monu who wrote (55742)	12/1/1999 11:49:00 AM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

monu; that Reuters article is the epitome of "spin doctoring" imho. The key phrase to that entire article is the point about - "Fundamentals" <<... "Sentiment crumbled after a senior OPEC delegate said Saudi Arabia and other big exporters were likely to raise production if the price of U.S. benchmark crude WTI stayed at or above $25 a barrel on fundamentals.">> The keyword here is - "fundamentals". The Saudi's are clearly on record in stating that the fundamentals of excess supply are not "completely as yet eliminated." Also; OPEC is not stupid. They see the media & market sentiment and all the comments on OPEC cheating - and how the market reacts. They know the price of crude would enter freefall to $17 on the first hint of any wavering here. No one believes that crude can be sustained here ? Yet, OPEC is know going to "shoot themselves in the head" - and increase production - virtually guaranteeing a return to $17-$18 crude oil ?!?!?! - WRONG ! This is the Street talkin $h!^ imho - ! OPEC is correctly focusing on the "Supply" side of the price equation and we are not there yet supplywise. The Street, as James Cramer said in his quote - "knows that $30 Crude will destory this stock market". Obviously; the money that is sitting in a postion to be severly negatively impacted by $30 crude, vastly exceeds the $ positions in crude futures & Oilpatch stocks by about a 5000:1 ratio. So we should definitely expect the Gloom & Doom troops to be doing everything possible to "talk down crude prices." One must analyze who the players are and what their motives are. Governments do not want higher oil prices, or inflation. The Bond market - dwarfs the stock market, they do not want higher crude prices, or inflation. The financial & Banking sector definitely does not want higher oil prices, inflation & the accompanying rate hikes. The Stock Market - of which the Oilpatch is a very small component; and is not much of a part of the "Momenteum Crowds" play at the moment - most definitely does not want higher crude Oil, inflation or a rate hike. Add to that; that many of the Oil Majors have been short crude as they must buy crude on the open market in many cases for refining etc - they want to talk crude down - surprisingly... It doesn't take much to realize that the "pro-Crude Oil" crowd is vastly outnumbered and out-resourced by the media. Fortunes will be made on this Oilpatch anomaly that we are looking eye to eye with right here. I only wish I had access to more money... I could make myself and a lot of others some serious money in the next 6-9 mos...(VBG).