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

To: Tomas who wrote (60691)	2/21/2000 9:00:00 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

If the price of the OPEC reference basket is 25 usd in March, we will not increase production," he said, adding that the target price of Gulf producers is 20-25 usd/barrel Exactly my point in my previous post. They are really talking about the OPEC basket price, which is an average of heavy, medium and light crudes. It was 26.04 on Feb 11 and should be little changed since then since WTI is back where it was on the 11th. The best thing that could happen would be for the basket price to drift down to $25 in coming weeks and OPEC not adjusting production much since they can then claim to be within their price band. A $25 OPEC basket price would mean several dollars higher for WTI and Brent. Oil prices are not really being set by some pimply-faced kid trading oil futures on the NYMEX. Spot WTI prices for real transactions between real people are usually a dollar or more less than the futures price, otherwise the tail would really be wagging the dog. John