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

To: Lucretius who wrote (14826)	3/14/1998 12:01:00 PM
From: HH	Respond to of 95453

LT, I know that you dont like Empire , but look at this; Subject: floating storage Date: Sat, Mar 14, 1998 09:39 EST From: Empire7 Message-id: <19980314143900.JAA28141@ladder03.news.aol.com> i feel that we are approaching a short term bottom for crude and that 13.70 or so may be a bottom, for now. i would not expect much of a rally out of any gasoline lead strength, maybe 15.75. i am greatly concerned about what i am seeing and hearing. storage has effectively topped out and now the "cash and carry" players are waiting for the contango to deepen. they are waiting for 45 pts because it will be at that point where vlcc's and ulcc's are taken on time charter and used for floating storage. when this happens we are going to have a glut that could drive prices lower than i originally anticipated and keep them there longer than i thought. even in the face of a potential short term rally, i have to lower my avg price forecast to $13 and spike low to $11. this is great news for refineries as feed costs continue to drop and operating margins remain stable. look for good news coming on VLO and use wakness to buy, imho. regards