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

To: Tomas who wrote (60235)	2/14/2000 1:02:00 AM
From: Tomas	Respond to of 95453

Leading research firm says oil price is still cheap 'in historical terms' The Globe & Mail, February 12 Oil price closes in on $30 a barrel, boosting sector BRENT JANG, Alberta Bureau Calgary -- Crude oil prices threatened to pass the psychological $30 (U.S.) level yesterday, hitting a high of $29.94 a barrel before closing up 1 cent at $29.44, giving a modest lift to oil and gas shares. With investors still skeptical about rallying oil prices, a leading petroleum research firm issued a report yesterday in an effort to persuade the doubters that $30 oil is cheap. John S. Herold Inc. of Stamford, Conn., said it "believes that oil today is not expensive at all in historical terms -- and it wouldn't be unreasonable for prices to trend higher this year." Herold said in a light-hearted addendum that oil remains a steal when compared on a per-barrel basis with consumer items ranging from soda pop and mouthwash to ice cream and whisky. Coca-Cola, for instance, costs $78 a barrel; Scope sets you back $826; Ben & Jerry's Chunky Monkey is a chilly $1,105; and Jack Daniels is a sobering $4,141. Consumer groups across Canada aren't amused, complaining that gasoline prices are no laughing matter. They accuse the oil giants of gouging them at the pumps, sending gas prices to near-record highs, with no immediate relief in sight. But Herold said yesterday that it "refutes the highly charged, widely held view that oil companies get rich at the expense of consumers. . . . Herold questions whether it's fair for the public to expect perennially low prices during the oil industry's profitable times -- and remain silent during the hard times." Herold added that consumers should bear in mind that "the oil industry is extremely volatile, and while oil prices are strong now, history shows that for every peak, there is a trough." Oil prices have surged since bottoming at $10.35 in December, 1998, but investors haven't flocked to the energy sector, preferring to focus on the potentially huge rewards from investing in dot-com stocks. Yesterday, the Toronto Stock Exchange's oil and gas index rose 48.11 points, or less than 1 per cent, to finish at 5,608.79. The index, which climbed 26.2 per cent last year, is down 4 per cent since the start of this year and off 19 per cent since last September, when oil hovered around $23.50 a barrel. David Fawcett, a Toronto-based analyst with Deutsche Bank Securities Ltd., said numerous oil and gas stocks are undervalued, but it's hard for the oil patch to compete against the prospect of dizzying returns in the technology sector. Other observers add that the high-profile crumbling of several Calgary-based producers, including Merit Energy Ltd. and Blue Range Resource Corp., have contributed to the jitters among energy investors. Oil prices, which more than doubled over the course of last year, have shot up nearly 15 per cent so far this year. Several Canadian investment dealers expect that oil prices will begin dipping within weeks, perhaps averaging between $20 and $22 a barrel this year, depending on the reaction of the Organization of Petroleum Exporting Countries and non-OPEC producers to $30 oil. Calgary-based Peters & Co. Ltd., for example, is calling for oil to average $20 in 2000. "We are maintaining our conservative $20 oil price forecast but moving to a positive bias in recognition of favourable market fundamentals which could support higher oil prices for the balance of the year," Peters said in a recent report. Oil averaged $19.24 a barrel in 1999, compared with $14.42 in 1998. "OPEC has moved very carefully over the past year and has continued to collectively spin the message of production and price management in the $20-per-barrel range," said Peters, which expects the cartel to agree to boost output modestly at its late March meeting. globeandmail.com

To: Tomas who wrote (60235)	2/14/2000 1:05:00 AM
From: Roebear	Respond to of 95453

Tomas, Well, the NAO may deliver the lower oil prices. NAO still maintains positive and though I have watched a few tentative feints towards the zero line they are turned each time. I am postponing my call for a return to colder weather mid to end of week for another 6 to 10 days, now to Feb 22 to the 26th, as effects the eastern US, especially the NE. Danged Crays! But with the price of oil not helping anyway, I have taken a few days off here and there from the Hex Sign paint shop, ggg! Consequently I have been since Friday mostly in cash and am looking for golden bargains, yellow or black... FWIW, Roebear