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

To: waverider who wrote (12634)	2/23/1998 5:06:00 PM
From: Broken_Clock	Read Replies (3) \| Respond to of 95453

D- I wouldn't go so far as to say that we have "disconnected" from oil since we took a fairly good beating today. However, I agree that we've weathered the storm pretty well.We have made "higher lows" since early January. OPEC will be forced to curtail shortly whether they want to or not. They are backing up storage in the mid east right now. I guess they could just pump it onto the ground but that sort of defeats the purpose. How low can it go? $5 to pump it, $5 to refine it. That's $10 and no profit. What about maintenance costs, etc? Storage costs? Time value of money? $12 oil looks like the bottom to me unless they want to start losing money. I also agree that the weak hands are gone. True believers are left. FYI looks like some one did a bull put spread on the CDG 35s for March and Apr. Bought March puts and sold April puts for a net credit. Did 65 contracts.I think the same happened with the calls on the Mar 40s and May 40s. PK