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

To: BigBull who wrote (61612)	3/7/2000 11:13:00 AM
From: JungleInvestor	Read Replies (2) \| Respond to of 95453

BigBull, there was an article this morning in a Costa Rican newspaper that said a US government agency (the Office of Energy Information) predicted that if OPEC eliminated their production cuts WTI would fall to $25.50/bbl by August and if they did not, the price would rise to $35/bbl. This is a huge increase over what was being predicted just weeks ago. Saudi Arabia is caught between a rock (if there are any in the desert) and a hard spot. Two tough neighbors (Iran and Iraq) and a number of other OPEC nations do not want any cuts because they cannot increase production, and production cuts would lower the price of crude and reduce their revenues. As a result, many people are beginning to realize that OPEC will either raise just a nominal amount or not at all and therefore the price of crude remain above $30/bbl for a long time. Look for credit agencies to start upgrading the ratings on debt heavy E&P's such as PXD, UPR, EEX (3 of my favs) and the dirty bird (FLC) because their interest coverage is more than satisfactory. Analysts should also begin to upgrade these stocks. Hope you are enjoying this as much as I am!!