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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (333)	4/20/2003 10:44:54 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 4912

'll take that as an "i have no idea"??? yes, "i don't know about price point" means close to the same thing as "i have no idea about price point". but as i said, current price point is imo less important than supply and demand. other than to suggest that the saudis seem quite comfortable with oil prices in the low to mid 20's per barrel well, they would "prefer" $1000 a barrel. but they realize this would destroy demand, so they set a price which induces complacency while maintaining cash flow. but this does not mean the price will be in the 20s two or five years from now. that assumes a static situation. but the reality is not static. the House of Saud could fall and bring an immediate oil shock. and if that doesn't happen, it will be Chinese water torture of insufficient supply and growing demand. another way to think of it is like this: the Saudis want to keep a certain market share. they can keep this share at $30 a barrel today. in ten years, they can keep the same share at a much higher price.