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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: bob s who wrote (26745)	3/17/1998 6:51:00 AM
From: Mike da bear	Read Replies (2) \| Respond to of 132070

MB--How do you feel about oil prices recovering later this year? Also what is the best way to participate in a bounce? Thanks in advance!! Bob I'm the wrong Mike but I'll butt in anyway... If you felt oil prices would recover, I'd short Airline stocks. They've been climbing like crazy as oil drops. I think fuel price drops (at the end of the supply chain, i.e., the consumer or airline) are nearing bottom. Even if the raw material price continues dropping ($/barral of crude) there's a limit on what the comsumer will see. If crude were free, gas wouldn't be free because of transportation & refining costs + state and federal taxes. Anybody know what the price of gas would be if the crude oil were $0/barrel? mdb

To: bob s who wrote (26745)	3/17/1998 12:03:00 PM
From: Knighty Tin	Respond to of 132070

Bob, With real economic activity slowing and Iraq back on stream, I think oil may stay down for a while. But, it is still a very profitable asset. This is a mixed asset strategy. If you own oil, and it is going down, you lose profits. But if you are discovering oil, the current price more than pays for you efforts. So, I like the cos. developing new finds, like Plains Petroleum and Pogo. As the price declines, the cost of equipment and the bidding competition from other firms declines. A low cost firm like Plains can then work its magic. MB