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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (42781)	3/12/2000 8:02:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

Analyst George Gaspar, who follows the oil industry for Robert W. Baird Co. in Milwaukee, said the members of the Organization of the Petroleum Exporting Countries have more control over oil prices than they have had in 20 years. In order for them to maintain their economic leverage, they will increase production just enough to discourage a new round of oil exploration that could deflate the price of crude. "This is the first time since the late 1970s that OPEC countries have been able to really stick together as a production unit," Gaspar said. "When they do that they have enjoyed tremendous improvement in their cash flow." Even if oil prices begin to retreat, the price of gasoline won't necessarily come down as much, Gaspar said. Part of the reason is that refiners and gasoline retailers will be under pressure to make up for lost profits and will be slow to pass the savings along. Time is working against consumers. Summer is peak driving season when gasoline demand and price normally head upward. chicagotribune.com