Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Roebear who wrote (72518)	9/7/2000 9:49:30 AM
From: MetalTrader	Read Replies (1) \| Respond to of 95453

the thread activity index looks to be going off the clock which makes me loath to fight the tape but short term looks like a lot of the easy money has been made. slightly off topic I've been looking for sector laggards, not just company laggards. In agreement with several others I do believe PGO will be taken, kicking and screaming higher and am continuing to accumulate. The focus on crude prices is understandable but the real threat is in refining and shipping capacity. As I understand even if Opec were to increase production, shipping constraints prevent more than 500 mbpd getting onto the water. Just like the lack of investment in E & P, shipping capacity has been largely frozen and with a three year lag time it's not going to be worked out quickly. The refining margins are at the highest level in a decade 200% above 1999 and the share prices have not reflected this in the least. Massive refinery maintainence scheduled for the 4th Q will put further pressure on inventories and upward pressure on margins. While all eyes are on refined inventories already, the industry will be removing TWICE as much capacity from the market than in past years. Safety concerns constrain the option of delaying maintainance any longer. In other words, regardless of anyone's crude price projection R&M margins are not going down and look to be strengthening throughout next year. I will be a holder of osx shares but a buyer of tos, vlo and ash for a sleeping energy play. MT