Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tomas who wrote (58153)	1/7/2000 10:10:00 PM
From: Tomas	Read Replies (1) \| Respond to of 95453

Merrill Lynch Sees 'Significant' Tightening In Oil Inventories - AFX Jan.5 Merrill Lynch is forecasting a 'significant' tightening in oil inventories as OPEC continues to withhold volumes from the market during the first quarter. The broker also believes that a more defensive investment climate could improve investor sentiment towards oil stocks. During the fourth quarter, the major oil shares failed to keep pace with the broader market, as investors focused on more aggressive industry sectors. However, the major oil shares rapidly outperformed the market during the last market correction in October 1998. The broker's year 2000 weekly PIPER forecast assumes that OPEC increases output by 2.5 mln barrels per day in April from current levels. Such an increase would gradually bring inventories back to normal by the end of 2000. This assumes a warmer-than-normal 1999-2000 winter. The broker has also evaluated a year 2000 inventory projection assuming that OPEC does not increase quotas. Such an outcome would result in a further price spike by the fourth quarter. Total petroleum inventories are now 5.9 pct below historical averages, down from 5.4 pct below normal last week and the 11.4 pct above normal peak of Feb 1999. Ongoing inventory declines are bringing tight inventories down to the extreme lows last seen in 1996, the broker added. rdw/bl NNN