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

To: RocketMan who wrote (51452)	5/22/2000 3:38:00 AM
From: shamsaee	Respond to of 99985

kind of amusing that todays business section of the local newspaper has Saudi and Iran pledging to raise production to keep oil under US 28 a barrel.The Opec countries for the first time in probably 20 years are working as a Cartel due to different reasons than most people Think. In the past the Saudi and Kuwait production was very much in line with what the US wanted.Things have changed considerably now.Most of the Gulf countries have exploding populations and are overspending and have economic problems.The younger generation is generaly lazy with little education and wants to start in middle management.The only source of work is in the government sector which now is huge and full of red tape.All private companies like ours hire the skilled labor from India,Pakistan and phillipines and all middle and upper management are Expats(British,Canadian,American,European,far East). The expats(foreigners) here outnumber the local population 3 to 1.These countries are building at a feverish pitch and more and more foreigners are coming in to do the work.We don't pay taxes here and the only source of revenue for the governments here is oil revenue,which now works like a social security. The whole region is in recession.My guess is that oil prices will stay in USD 25 to USD 27 range for the long run and the US better start looking for alternative sources of supply.