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

To: j g cordes who wrote (16119)	1/4/1998 10:22:00 PM
From: Bill Turk	Read Replies (1) \| Respond to of 50167

Jim, I appreciate your response. I view oil as one of the primary keys to inflation. I also expect oil to remain cheap $16-$19 versus $24 this year. However, for this reason(low prices) I expect oil to begin to increase in price towards end of 1998 as many large users, utilities, steel mills, etc. switch to cheaper oil versus other energy sources--nuclear, coal, etc. As we phase out nuclear plants, oil may be a strong alternative especially at lower prices. I am also curious as to the impact of the Union Pacific failures to deliver coal trains on time to utilities for the past few months. Will the utilities switch even more energy to oil. Thus, while oil consumption may only rise modestly this year, I look for an acceleration in usage towards the end of the year. Bill