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

To: Flan who wrote (4392)	12/3/1997 5:39:00 PM
From: Lucretius	Read Replies (2) \| Respond to of 95453

Nice day. NE closed strongly back above the 50-day moving average. Nice volume and push at the end of the day. Looks like I'm holding onto those calls a little longer. Anybody jump in? Thean, what's your new S-T target for Thurs in NE? Flan, I think that the Increase in Iraq's output is already priced into oil. We would not be getting this kind of push in the services unless there was some decoupling from Iraqi oil concerns. There's a good chance we could simply bounce back w/out the backing and filling that many here seem to expect as a given. Many here seem to be overly eager to sell calls or sell their stock in the hopes of timing this backing and filling w/ precision accuracy. Don't be overly eager to sell calls, they may come back to haunt you and make the last month's grief all for nothing because suddenly you thought you could call the mkt whereas you didn't before? I sure didn't anticipate these stocks going straight down as they did. Who's to say they now don't go straight back up over the same time period? Finally, a reward for those who held strong dueing the latest adversity (but hey, we knew this day was coming) Good Luck! As for the shorts--- HAAA!!!! Start buying my stock before you lose your a??!!!!! -Lucretius

To: Flan who wrote (4392)	12/3/1997 5:54:00 PM
From: DNaber	Respond to of 95453

Flan, I think you are right that increased sales are a given...the US position has slowly changed towards allowing an increase...probably to 3 billion $ every 6 months instead of 2 billion. Still that only translates to roughly 350,000 bpd. The recent OPEC agreement is expected to add another 600,000-800,000. IMO that the market has already factored in both of these additions to bring oil to where it is now (down from the 21-23 range). As the realities of increased demand (even with the Asian slowdown) and decreased reserves take hold oil will move back up to the 20$ range and later beyond. When the announcement takes place of increased Iraqi sales there is likely to be another short term kneejerk reaction (But nowhere near as severe as the OPEC reaction-people are getting smart)-As previously indicated by fellow posters we may retrace some but IMO that will provide another great buying opportunity. Go BDI Dave