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

To: marc chatman who wrote (15247)	3/18/1998 8:20:00 AM
From: marc chatman	Respond to of 95453

CNBC -- Sal Ilacqua of Rothschild (oil analyst) 1. Specification in futures is pulling market price below what it probably should be. 2. Says there are some positive statements from Venezuela about possibility of OPEC/non-OPEC producer agreement, but should be hard to do. Says we may get some hints before the meeting in late March whether things are happening behind the scenes. 3. Says nobody really knows the storage situation and it has become the subject of speculation. 4. Says big oil stocks are reasonably interesting, but smaller producers will be more interesting since they will be hurt much more by the price drop (mentions Benton and Triton -- which also may be takeover targets). 5. No mention of drillers or service cos.

To: marc chatman who wrote (15247)	3/18/1998 8:21:00 AM
From: Bazmataz	Respond to of 95453

Summary of Sal Ilacqua on Squawk Box: "At an excess on the downside" with oil. Statements out of Venezuela that they would be willing to compromise production if OPEC agrees. Past two years, Venezuela has exceeded OPEC quota, and Saudi's now saying they won't be the swing producer if Venezuela won't cut back. (Venezuela is a member of OPEC). Could go to $10/barrel by summer. Venezuela OPEC's biggest quota violator. Some say surplus of 1 mil or 2mil barrels per day. World demand 75mil barrels per day. NOt a big percentage surplus, but anything out of whack throws pricing off. "Most tanks around the world a pretty well filled up with oil." So the extra oil goes into the futures market and spot price, and that drives price down. Any stocks worth buying? "First quarter earnings are going to be pretty bad" [for the big oil companies]. Real play in "smaller stocks", Benton (BNO), BR, Triton (OIL), MLRC will be hurt much more meaningfully than larger companies. Benton and OIL are attractive takeover candidates according to this guy. He likes overseas exposure of these two companies. Didn't even ask him about oil services stocks. MArk Haines, what a dork. Said he would talk about oil services and doesn't even ask about 'em. Sorry everyone. I was typing as he was talking. Hope someone got something out of this. Baz