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

To: SliderOnTheBlack who wrote (60316)	2/15/2000 11:02:00 AM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 95453

Here's why I would still be selling my "margin" on ALL decent rally's... The political pressure we can wield against Mexico is significant - watch us shut down the borders with drug checks to crush them as merely one tool... ===================================================================Mexico City, Feb. 15 (Bloomberg) -- OPEC and other major oil producers should agree to produce more oil to prevent prices at nine-year highs from damaging the world economy, Mexico's Energy Seretary Luis Tellez said. Tellez said Mexico, Latin America's largest oil producer, is worried that soaring oil prices could backfire for oil countries by hurting growth in major economies including the U.S. He said producers should gradually increase oil production after March, when supply limits agreed upon by the Organization of Petroleum Exporting Countries and a handful of independent producers expire. ``I think the price of oil is too high,' Tellez said in a television interview. ``But I'm sure that oil producers will take the right decision' from March 31 onwards. Both non-OPEC Mexico and Venezuela, OPEC's No. 3 producer, have called for an end to an oil supply limit agreed upon last March to remove about 7 percent of daily global oil supply from the market for a year. Ministers from the two countries plan to meet with Saudi Arabian Oil Minister Al Naimi, OPEC's most influential policymaker, on March 2 to agree on production after cuts expire on March 31. Among the ministers of Mexico, Venezuela and Saudi Arabia who helped orchestrate the last round of global production cuts, Tellez is the first to publicly endorse a boost in oil output or call prices ``too high.' ``What's required is a policy that permits us to bring more oil to market and avoid or arrest what we have in the international market today -- very low inventories,' Tellez said earlier in a radio interview. U.S. Energy Secretary Bill Richardson, who has been pressuring producers to boost oil output, will travel to Mexico Saturday for meetings with Tellez. Crude oil for March delivery fell 4 cents, or 0.1 percent, to $30.21 on the New York Mercantile Exchange, near a nine-year high. ===================================================================== While I think we ultimately go higher in Crude Prices; that does not mean that Oilpatch stocks won't rally only to be met with resistance and, or heavy selling - profit taking prior to the Saudi-Mexico-Venezeula meeting and ultimately the OPEC Vienna summit itself. All we need is for futures traders to get "skittish" in this openly acknowledged nervous market. Crude could retrace $4 here in 3-4 days very, very easily. - take this scenario: Bad APi's, Venezeula suddenly siding with Mexico in desiring increased production in March, Futures trades cashing In & going short on the news; spin doctors led by Richardson & the consumer actiivist's worrying about $2 Gas - creating a "Bash OPEC" environment - and we retrace right back to OSX 78-82ish all over again... My point is that there is virtually no worry to being fully invested and holding here - there is NO reason to sell; I am referring entirely to MARGIN holdings. I would continually look for profit taking opps all the way thru the actual OPEC announcement for my "margined" holdings. We have a much too nervous market here - hell; even the DOW could take a 500 point bath here - wreaking havoc on the patch. You MUST be prudent here with margin. The shorts and the spindoctors and the Clinton-Richardson folks have not given up the fight. Folks - never, ever forget one fact: It's "us" and OPEC against the World ! No one else wants higher Crude prices folks ! - this battle is no waltz thru the park... and I don't think we can spike thru the OPEC meeting non-stop - we did not last year; we will have strong rallies AND retraces right up to and thru the final announcment. Personally I am selling/eliminating all margin near OSX 95ish (prior to the OPEC meeting) and buying/adding margin near 82; in between those ranges - I just sit patiently...no reason to sell, or to buy. Make the bottoms worthwhile and make the tops profitable. Be patient - we'll see both ends again potentially and there are sooooooooooooooooo many laggards; that no one can miss anything here.