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

To: diana g who wrote (56944)	12/15/1999 10:38:00 AM
From: kormac	Read Replies (2) \| Respond to of 95453

Hi Diana, I agree with you regarding the self-interest of OPEC. To suggest that some country will break ranks is to ignore what has happened during the last two years. As a recent article mentioned, Saudi Arabia is not able to pay for its social services. These are services that people have come to expect for a country that has huge reserves. This is what Simmonds has drawn attention to when makes the point that $16 oil is the minimum for oil companies here to survive and for Saudi's and other producers to pay for the social costs. Every day oil price remains over $24 (as it has for a little over a month now) the risk reward ratio in this sector diminishes. with my best, Seppo