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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (12739)	9/7/2002 5:11:29 PM
From: Tomas	Read Replies (1) \| Respond to of 206209

OPEC hewing to defense of price vs. market share Oil & Gas Journal, last week's issue By Bob Williams Are markets assured of high oil prices for the next 5 years or so? The Organization of Petroleum Exporting Countries has readily ceded market share to the likes of Russia and other non-OPEC oil exporters this year, preferring to defend its oil price target rather than fight for market share. And the likelihood is that this strategy will hold for another 5 years, as global oil demand recovers from its recent collapse. That's the thesis put forth by Boston think tank Energy Security Analysis Inc., which notes that that OPEC has made "enormous sacrifices" in market share this year. Price vs. volume "Notwithstanding current cheating above quotas and the likelihood that OPEC will raise quotas to 'absorb' that cheating late in 2002, we believe OPEC wil continue to choose price over the volume over the next 5 years," said ESAI Managing Director Sarah Emerson. Among the rationales she cites for this view: * OPEC can easily defend current market share as demand rises over the next 5 years. * The magnitude of the increase in the former Soviet Union's market share is not that big. * In order to take back market share, OPEC would have to initiate a market share war of sorts, and it would be difficult to control the resulting decline in oil prices.