Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SJS who wrote (15428)	3/18/1998 11:30:00 PM
From: HH	Respond to of 95453

steve, I think some heavy money has been coming in recently and I dont think it'll stop before this weekend . then I think the "meeting" will be a "success" What happens behind the scenes after that..... I dont know. HH

To: SJS who wrote (15428)	3/19/1998 7:48:00 AM
From: SJS	Respond to of 95453

Oil Stocks opinion... OIL STOCKS. One day after the sector went into the toilet on renewed pessimism that oil prices would continue to drift lower and possibly trade under $10 a barrel, the sector is beginning to make a comeback on rumors that OPEC and non-OPEC producers will meet soon to reduce output. While getting these two sides to agree on production quotas is encouraging and is helping the oil sector today, getting an agreement will be a rather large challenge as concessions and compromises will need to be reached, something that even within the OPEC group has been difficult to uphold. Nonetheless, with crude prices again trading above the $14 mark, this is quite an improvement from recent price quotes that had a barrel of oil priced at around $12. Yesterday we wrote that while the short-term outlook for oil is not encouraging, any type of an agreement among oil producers would certainly help the oil sector, especially the drilling and services stocks which has been dumped en masse over concern that the decline in oil prices. While the group as a whole is not out of the woods yet, investors should consider adding some oil drillers and services stocks because they remain attractive long-term investments, although their are plenty of headaches just ahead. It's understandable that not all investors share a positive view of the sector as there is no reason to believe that oil producing members will be able to put a stop to the price erosion. However, if oil prices are just able to stabilize above the $15 mark, contract rates will have a better chance of being renegotiated at more favorable rates, which means that operating margins will certainly improved.