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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (3935)	11/28/1997 11:01:00 AM
From: tyc	Respond to of 95453

OPEC pushes harder for output deal By Neil Fullick JAKARTA - Oil producer group OPEC pushed harder on Friday towards a compromise on how much more crude it can pump next year without sending prices into a nosedive. But expressions by some in the 11-strong membership of a willingness to compromise were balanced by signs that others remained cautious about scaring jittery markets over the edge. "Things are growing closer," a delegate said after the third round of meetings in as many days at a conference of the Organisation of the Petroleum Exporting Countries. Oil ministers will hold a key meeting without aides at 1000 local (0300 GMT) on Saturday to discuss how far to raise the group's overall production limit above the current discredited 25.033 million barrels per day (bpd) cap. It was not clear whether a new ceiling could be agreed at those talks or further discussions woulod be needed on Sunday. The opening position of the world's biggest exporter Saudi Arabia in talks with some other countries was a big ceiling of 27.5 million bpd and it has yet to signal a shift from that level. Price hawk Iran and some other members believe any rise in the current official ceiling should be modest to preserve prices and shore up revenues. Iran offers possible compromise But in a sign of flexibility Iranian Oil Minister Bijan Zanganeh said on Friday that he may be willing to compromise on the 1998 limits of 26.5 million barrels a day (bpd) or more. An Iranian delegate had said earlier in the week that anything above 26.5 million was too high. Powerful Gulf Arab producers like the Saudis, Kuwait and the United Arab Emirates (UAE) want to boost OPEC's overall ceiling to the real level of OPEC supply, a move that would permit them a share of growing world demand. Saudi Arabia believes boosting its own output to its highest in 18 years would restore relevance to OPEC's ramshackle quota system and give the kingdom even more clout in world markets. The hard bargaining over the first collective effort in four years by OPEC to raise oil production has got underway in small private meetings. The first sign of Gulf Arab willingness to compromise came from UAE Oil Minister Obaid al-Nasseri who said: "We are always flexible ... In discussions there is always a middle point." Reporters had asked him if his country could agree to an OPEC ceiling of less than 27 million bpd. Algeria fears higher ceiling The cartel met behind closed doors on Thursday to review in general terms how much oil the world can absorb without undermining prices and shrinking revenues for its members. In his first substantial comment, Algerian Energy and Mines Minister Youssef Yousfi echoed Iranian concerns by saying a higher ceiling could hurt prices. The minister of late arrival Venezuela, OPEC's biggest overproducer, said he did not care where OPEC set quota limits, suggesting he would not be prominent in the talks. "I am more concerned about Kyoto," Erwin Arrieta said, referring to talks next week in the Japanese city on curbing global pollution. "It is not important raising, lowering, or keeping the ceiling." Indonesian Oil Minister Ida Bagus Sudjana, after initial soundings, said other ministers preferred a ceiling of between 26.5 million and 27 million bpd. That is equivalent to a six percent to eight percent rise over current limits. Analysts point out that thanks to quota busting, a rise of around two million bpd in the ceiling would mean an actual increase of little more than 500,000 bpd in world supply. Return to Top c1997 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.

To: Lucretius who wrote (3935)	11/28/1997 11:04:00 AM
From: bw	Read Replies (1) \| Respond to of 95453

L..As you know, I'm one of the impatient ones on this board! Now that the majority of my '97 driller trading profits have been wiped-out, I personally must act from a slightly more conservative approach. The style that has worked for me during the last year [until Sept-Oct]is to put the most weight behind my trades with a large percentage of my life's savings on the line [OK..I know this part is an accepted bad strategy]. Heavy margin trades don't allow for too much deviation on the downside now that I'm trading principal and not profits. Wrong for selling now? Probably yes, but next week should tell the turnaround story better than the thin volume of today. I was also glad that I sold my DO [$90k] right before the stock dropped from $56 to $49 in the span of two days...There is a price to pay for some comfort level* in these times. Trends going up? Certainly, but there will always be another opportunity around these parts... *life savings is a somewhat subjective term, meaning that in my line of business..I can also re-create my savings in one year if the "coffers are depleted". Fortunately, I'm not enough of a gambler to let this happen and have the advantage of this income potential from a non-stock market occupation.