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Gold/Mining/Energy : Oil & Gas Price Economics -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (296)	10/2/2000 12:56:12 AM
From: rajaggs	Read Replies (1) \| Respond to of 350

Saddam may hold the key but IMHO it's doubtful that he'll turn it to the OFF position. It's more likely, to my cynical mind, that he is currently negotiating with the US/UK about stopping bombing his country for fly-over violations and a reduction of war reparations for his attack on Kuwait, in return for maintaining oil supply. The short term panic calls may have been answered on the home heating oil front by Clinton's political move of releasing SPR oil at this time but he has to refurbish the SPR inventory at some time soon. This will put upward pressure back into prices and in combination with nat-gas prices still increasing and consumers having to pay more for de-regulated electrical supply, there may well still be an energy pricing/supply crunch this year. In the longer term the problem is still major league and no visible US politician is likely to take the hard decisions necessary to make the American people aware of the fact that their prosperity is further controlled by OPEC than before and they have to pay up to OPEC or start paying a higher than market price now through taxes, to facilitate and make economic a change to other forms of energy, especially for transportation. Hoping that it won't happen is only likely to ensure that it will happen. Maybe not this year but certainly in some year soon. 'jaggs