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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (21174)	7/22/2001 11:57:54 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 30051

Except that in the case of crude, there is a monopolistic cartel capable of holding the line on supply. I agree completely that oil like many other commodities suffer from intrinsic excess capacity. By the way, another "small" element in favor of crude and the oil sector is the current administration. I think that OPEC will try and keep crude in the range of $22/$28 for as long as they can hold the "coalition" together. The bottom, to improve profits, and the top to prevent the development of other crude resources (such as shales) which could become cost efficient at prices above $28. What do you think of gold, and it's excess capacity? Zeev