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

To: Tomas who wrote (63814)	4/4/2000 10:58:00 PM
From: Tomas	Respond to of 95453

Apparent divisions in OPEC over exactly what the price band would be has deterred oil traders from taking the idea too seriously. "The market is more interested in production numbers than what they're aiming for in terms of bands," said one oil trader. Venezuela's Ali Rodriguez, current OPEC president, envisages telephoning or faxing OPEC members telling them to raise or cut production according to how much they produce. "The system will be retroactive rather than proactive which which will make it very difficult to manage prices within the prescribed range," said a trader. Oil traders -- who thrive on volatility -- may be tempted to push prices quickly towards the outer reaches of the band and test OPEC's resolve on micro-managing the market, the analysts said. "It's like a fixed exchange rate system. Whenever we are heading for the edge of a pre-announced band, the market will try to manipulate prices," said Drollas. ... From Reuters, April 4