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To: BigBull who wrote (74598)	9/25/2000 10:42:23 PM
From: Roebear	Respond to of 95453

BigBull, We must be in for some volatility of a negative fashion, SecurityTrader has a whole three items up for green tonight, one is a weekly on DROOY, BRCD and the weekly for CRB. They lost their post of setups so maybe they lost all the greens too (I don't think so). One setup they do have posted has a comment to "beware the indexes we are in shaky territory". With that I agree. Best, Roebear

To: BigBull who wrote (74598)	9/25/2000 11:30:14 PM
From: Razorbak	Respond to of 95453

Shooting an Elephant? "Crude Oil Prices Tumble" "U.S. Futures Fall More Than $1 A Barrel After U.S. Orders Release From Reserve" September 25, 2000: 3:45 p.m. ET NEW YORK (CNNfn) - Crude oil prices slumped Monday after the U.S. government announced last week that it will tap the nation's strategic reserve to ease the price pinch ahead of the high-demand winter season. In late trading, U.S. light sweet crude futures for November delivery fell $1.08 cents to $31.60 a barrel. London's benchmark Brent for November delivery dropped 90 cents to $30.35. Oil prices have fallen by about $2 a barrel since the announcement by Energy Secretary Bill Richardson after the market's close Friday to release 30 million barrels from the U.S. Strategic Petroleum Reserve over the next month. "The market is reacting to Richardson's announcement," said Peter Gignoux, manager of the petroleum desk at Salomon Smith Barney in London. "By putting more barrels on the market, it immediately alters U.S. crude oil inventories." The Clinton administration said the release of the barrels was needed to avoid a winter shortage of heating oil stockpiles, now near 24-year lows. The move, which was more substantial than some analysts had expected, was the first such release from the reserve in nine years. "This is a substantial additional volume of oil," said Robert Priddle, executive director of the International Energy Agency, in a telephone interview with CNNfn.com from the agency's headquarters in Paris. "It amounts to roughly 1 million new barrels of oil per day, and that's greater than the 800,000 barrels increase from [the Organization of Petroleum Exporting Countries]," he said, citing an OPEC pledge early this month. Accelerating economic growth in Europe and Asia, tight production capacity, high U.S. consumption levels and declining oil reserves have all been cited as factors in the rise in the price of crude, which had more than tripled in about 18 months. Saudi calls release a matter for the United States Saudi Oil Minister Ali al-Naimi said on arrival in Caracas on Monday that the release of the U.S. emergency supplies was a matter for the United States alone. "We have already said that that is a decision for the U.S. to make," Naimi told reporters after flying in to attend an OPEC summit, hosted by Venezuela to mark the 40th anniversary of the organization. Naimi will take part in a meeting of OPEC oil, foreign and finance ministers on Wednesday morning ahead of the formal opening of the summit of political leaders on Wednesday afternoon. Bad for oil companies' shares Shares of many leading oil companies fell in both the U.S. and Europe Monday. Companies with big exploration and production businesses enjoy fatter profit margins when prices rise. The plunge in the prices came as the Organization for Economic Cooperation and Development (OECD), a grouping of some of the world's richest countries, said how much it would lower its forecasts for economic growth in its 29 member nations if oil prices remain high. If crude stays at $33 a barrel, the OECD said, the effect would be to trim potential growth among members by an average of 0.4 percentage points next year. However the OECD said oil prices were likely to come down in the next 12 to 18 months because of an expected 1 percent rise in worldwide output, and the belief that OPEC has enough spare capacity to meet the world's near-term needs. The OECD said that based on the value of a barrel of oil in the futures market, the panel expects prices to hover at around $30 per barrel through the first quarter of 2001, then fall to $27 a barrel toward the year's end. Will it be enough? But Michael Rothman, director of energy market research at Merrill Lynch & Co., said the U.S. move was unlikely to resolve the core problem facing the industry -- tight capacity at the world's refineries -- which might continue for several years. "It's like trying to shoot an elephant with a BB gun," said Rothman. Speaking to delegates at the IMF meeting in Prague, Czech Republic, Rothman said the tight world oil supply could keep oil prices near the $30 range, though they should fall when diminished oil inventories in OECD member countries, including the United States, start to build back up. Rothman said high oil prices are underpinned by traders' doubts that future oil supply can expand enough to meet growing demand -- what he called a "show me the oil" mentality. Ministers of the G-7 industrialized nations said on Sunday the OPEC oil cartel should work to keep prices within the band of $22 to $28 per barrel that it said it would target earlier this year. OPEC President Ali Rodriguez of Venezuela said over the weekend he expected oil prices to fall back to the cartel's preferred range, Reuters reported. Critics have claimed the move to release oil from the U.S. strategic reserve was timed to assist the presidential aspirations of Vice President Al Gore, who in recent weeks had called for the government to tap its reserve. President Clinton insisted the move was designed to ease the price of winter heating oil. U.S. stockpiles of oil have been hovering near 24-year lows. "This is a U.S. domestic political decision," said International Energy Agency director Priddle. -- Reuters contributed to this report cnnfn.cnn.com