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

To: Les H who wrote (59301)	9/22/2000 6:52:27 PM
From: Secret_Agent_Man	Respond to of 99985

Les, that actually sounds like a drop in the bucket? Wonder what daily usuage is for say the northeast and how quickly those 30Mil bls would actually last to allegedly stem the tide? anyone?

To: Les H who wrote (59301)	9/22/2000 8:03:37 PM
From: Haim R. Branisteanu	Respond to of 99985

Les that is one of the biggest scams engineered by an government. this is why I want to buy crude from the government but I want to pay cash and get delivery now as I can do in Rotherdam for example right?? Wrong!!!!!!! The department said it would ask for bids on Monday, with companies required to submit their bids by Friday. Awards of the crude oil will be made on Oct. 2 following negotiations with the highest bidders, the department said. Now if I want the crude now I must bid and hedge ---- sell Crude futures as delivery is only after November 1. The net effect is pressure on crude oil futures nothing else. Just wonder how the market for heating oil will recover at a time there is amply supply on the sea but shortage in refinery capacity. Haim

To: Les H who wrote (59301)	9/23/2000 3:56:07 PM
From: Saulamanca	Respond to of 99985

AL GORE'S RISKY OIL GAME September 22, 2000 Vice President Al Gore went into full pander mode Thursday, saying it's time for President Clinton to tap into the Strategic Petroleum Reserve, an emergency oil cache created to guard against supply interruptions like those that shocked America in the 1970s. That move, said Gore, would mean more oil and lower prices. That's just foolish, and Gore's smart enough to know that's foolish. The reserve is there for emergency purposes, not to cut a couple of cents off a gallon at the pump six weeks before an election. At best, Gore's election gambit would have a very modest impact on oil prices. At worst, tapping the reserve now would put the U.S. at risk if a real crisis--a wartime interruption of oil distribution--were to occur in the future. The U.S. is screaming at OPEC countries to increase production, saying prices are rising because there isn't enough oil out there. If the U.S. taps into its emergency stash of oil, producing countries might well reduce what they supply so that total output stays the same. What's worse, that would set a precedent. The markets would know there'll be an early point of no more pain for a Gore administration. They would know that a Gore administration's inclination would be to meddle quickly in the marketplace, and the markets would react accordingly, creating all sorts of distortions and unintended consequences. Republican George W. Bush correctly called Gore's plan an "election year political ploy." Of that, there's no doubt. But it's even more dangerous than that. It plays to the populist notion that government can--and should--control prices when they begin to pinch. Gore knows exactly what he's doing. Populism is playing well for him right now. But wiser minds in the Clinton administration are arguing against tapping into the reserve. Treasury Secretary Lawrence Summers said it would be "a major and substantial policy mistake." Federal Reserve Board Chairman Alan Greenspan opposes it. So who's supporting the move, aside from Gore? There's Energy Secretary Bill Richardson, whose tenure this year has featured the Wen Ho Lee fiasco and the "controlled" government burn that nearly incinerated all of Los Alamos. Fine company. Oil prices are relatively high, and that will probably get worse before it gets better. But this market ultimately will correct itself. Prices at these levels are already luring additional capacity to the market. Bush, to his credit, doesn't just blast Gore's plan. He has some ideas of his own--increasing oil and gas exploration, expanding refining capacity in the U.S. and working with "friends and allies"--in OPEC and out--to increase production. Bush is right. And he has some powerful allies in--of all places--the Clinton administration. chicagotribune.com