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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Bo surfs who wrote (13389)	11/2/1997 2:04:00 AM
From: AlienTech	Read Replies (2) \| Respond to of 50167

>>What effect will this upcoming Iraq crisis have on the market? Should we stay away from certain sectors? << IRAQ has nothing whatsoever to do with oil prices. They dont even export enough to feed themselves. Ofcourse this does not mean that the speculators are going to not use it to cause a little more fear in the market. If Saudi Arabia had said something there is more credibility and the US imports more oil from venesvala than even saudi arabia, and they want to increase that even more. Even great britian sells a lot of oil. So if you see the sector getting hit it would be a good time to average down or find an entry point. Amazing that some 2 bit dictator in a mud hut can make the US stock market collapse.. Stranger things have been known to happen though.

To: Bo surfs who wrote (13389)	11/2/1997 11:15:00 AM
From: j g cordes	Respond to of 50167

Bo, there was an editorial in the NYTimes which sketched some interesting developments on oil industry. I'm going from memory over a week ago... but here's what I remember. The traditional overseas exploration/develpment model for US oil companies used to be they'd enter into state or private contracts to extract oil for very healthy percentages of revenue or product or in many cases simply own the foreign properties. During the 74 crisis period this tradition changed radically and moved more towards oil companies getting far less revenue, having far less influence, being hired principly to explore and setup the operations. This has led to strong autonomous oil states which fund and develope many of their own wells, selling to US companies and refineries. The Iraq situation and the Caspian and Black Sea oil resources, due to the weaker political and economic fortunes, are stimulating Iraq and Baltic states to cut old fashioned deals with oil companies.. in Iraq, deals with the French and Italians and Japanese to get the oil moving again_ and to undermine the alliance of oversight imposed after the Iraqi war. Iraq is using oil as a political weapon to divide the alliance, using sweet deals to let greed work its magic on UN enforcement solidarity. How long any of these deals would last if Iraq got back on its feet is of course debatable.