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

To: MetalTrader who wrote (77620)	10/31/2000 4:27:40 PM
From: energyplay	Read Replies (1) \| Respond to of 95453

MeatlTrader - While I would agree that much of the rebound in oil was due to Asia comming back, there were some additional smaller factors at work - On the demand side, increased U.S. demand, driven by electricity and those wonderful SUVs everyone keeps buying. On the supply side, decreased drilling and closure of many stripper wells in the U.S. (about 1.2 million barrels day) and of course the natural decline rates. Opec & Mexico did shut in some production during this period. As long as Asia does not collapse, we should see a supply / demand balance which will keep oil in the high $20s IMHO. Basically, I think the supply is tighter and the non-Asia demand enough higher than 1997-1998 to keep prices in that range.