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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (1926)	11/14/2001 8:49:29 PM
From: bill	Read Replies (2) \| Respond to of 11633

Coal trusts dance to the tune of oil and natural gas prices. Coal becomes more and more desirable as both o&G rise. However, crude oil dropped 1.97 a barrel today. That is reflected in the price of the oily trusts. Since they all are used for much the same purposes: heating, fuel for vehicles of various kinds, power generation, they are inextricably linked. Coal has suffered for years, not for environmental reasons, but because of cheap oil and gas. There is some inflexibility built into the system of course, because of capital costs. Thank goodness. It gives some predictability and sustainability of prices. A lot of the rush to announce new generation plants has disappeared with the fall of O&G prices. No use bldg new plants if the Russkies and OPEC are going to have a price war. With oil at 9-10 dollars a barrel,nobody is bldg anything. OPEC seems to have got agreement but the Russians are desperate for hard currency and there may be a deal with the US re the US buying Russian oil. Russia gets the hard currency. The US gets cheap oil to help get its economy out of recession. It also has got cooperation re bases for operations against Bin Laden. OPEC gets a lesson about the difference between major and minor powers. We may be seeing a major shift in alignments. US and Russian interests are beginning to line up. But... who knows. Coal trusts? I've looked at them. Six months ago they seemed like a sure bet. Now, I'm going to give them a pass until I see some evidence that oil and gas are going back up. Just saw a bulletin that says OPEC agrees to cut oil production by 6%. that's great but it is meaningless unless non-OPEC oil producers are onside.