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

To: Big Dog who wrote (6610)	1/5/1998 11:58:00 AM
From: HH	Respond to of 95453

Mike , I know you dont think its related, but here is something I pick off AOL. I agree with you, however I think this is creating this weakness. I am betting it is creating a buyibg opp.I am in GLM pretty substantially. LONDON, Jan 5 (Reuters) - World oil prices spiralled to a new two-year low on Monday as dealers prepared for the imminent resumption of UN-monitored Iraqi oil exports. Dealers said demand curtailed by Asia's financial crisis, a mild winter in the west and the prospect of increased OPEC supplies were all pushing oil lower. London futures for international benchmark Brent blend shed 29 cents a barrel in early trade to $16.13, deepening a slump which has cut the cost of crude by 25 percent in just three months. ''Keep looking lower,'' advised technical analyst Al Graham at Elliott Wave International. ''A lot of people have already sold this market but I see no reason why we shouldn't go below $16,'' said a trader in London. Speculators were betting that Brent might have further to fall with the expected return to world markets within the next few days of Iraqi oil. United Nations Secretary-General Kofi Annan on Monday is expected to approve a plan for aid distribution under the third six-month phase of the oil-for-food exchange. Annan will also examine in early February whether Iraq should be allowed to raise oil sales under the exchange from the current regime of $2 billion every 180 days. Iraq suspended exports in early December at the end of the second phase of the arrangement to devise a new aid plan. Baghdad sold just short of 700,000 barrels a day (bpd) on average last year but the price slump on world markets and a higher sales ceiling could see Iraqi exports rocket, putting added downward pressure on crude prices. If the United Nations were to permit sales of $3 billion in the period to early June, at current prices Iraq would have to move more than 1.3 million bpd to reach its allowance. Even under a $2 billion ceiling it would need to sell more than 900,000 bpd. Mild weather so far this winter in the northern hemisphere and a slowdown in demand from Asian buyers hurt by the region's financial crisis have also undermined the price of oil. Winter European heating oil was trading at a 26-month low on Monday. Stocks of heating oil and diesel in the European Union at the end of November were 17 percent higher than at the same time a year ago, according to agency Stichting Euroilstock. ''Asia is one of the main problems but also in the West we haven't really yet had a winter,'' said Scott Carter, a senior oil trader at Tosco Petroleum in London. Oil prices at $19.30 for Brent in 1997 averaged a dollar less than in 1996 and most analysts think the market will do little better than $18 on average this year. World demand is expected to grow by about 2.5 percent in 1998 to 76 million bpd after three percent growth in 1997. But Asia's currency woes, having forced up the price of dollar-denominated crude imports, could put a further dent in demand growth, analysts have warned. Refiners in South Korea, Japan and Singapore amongst others have announced reduced operations for the early part of 1998. Meanwhile world supplies will be bolstered by incremental OPEC output under a new 27.5 million bpd output ceiling adopted by the cartel in early December. But quota cheating means that if OPEC member Iraq oil starts exporting by the middle of the month January OPEC supplies will set a new record 18-year high of more than 28 million bpd.

To: Big Dog who wrote (6610)	1/5/1998 12:30:00 PM
From: bw	Read Replies (2) \| Respond to of 95453

Took position in RB/FLC..Very impressive fleet: R&B Falcon Corporation currently owns and/or operates 106 offshore units plus inland towing equipment comprised of: 11 semisubmersibles, 7 of which are ultra-deepwater and/or fourth-generation 11 drillships, including 9 DP drillships 1 North Sea support semisubmersible 26 premium international jack-ups, 9 of which are 300 ft. cantilever international class 41 domestic drilling barges 10 domestic workover barges 3 Maracaibo barges 3 submersibles 2 self-erecting tender supported offshore units 1 floating offshore production vessel 101 inland marine service units New web page: rbfalcon.com