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

To: Broken_Clock who wrote (16526)	3/25/1998 5:52:00 PM
From: Nathan	Read Replies (1) \| Respond to of 95453

Question to all: What will happen to the deep water drillers if the fed raises interest rates? I know it will kill the dow and the high flying techs but would that have any affect on the oil sector after a couple of down days? Might crude rise even more? Any/all comments would be appreciated! Thanks.

To: Broken_Clock who wrote (16526)	3/25/1998 6:44:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 95453

PK, the one fear I have is that if oil runs up too quickly Greenspan could lower the boom on the market. The low price of oil has been the major contributor in keeping inflation in check. A precipitous action by AG could upset the whole applecart. Regards, Paul

To: Broken_Clock who wrote (16526)	3/25/1998 8:00:00 PM
From: Czechsinthemail	Respond to of 95453

PK, I think there is uncertainty that is keeping the movement constrained both to the upside and to the downside. But with the recently strengthened oil prices, the catastrophic fears of major drilling cutbacks start to fade. In that environment, drillers, at least the offshore drillers, should do extremely well. Since we're only 3 or 4 weeks to the beginnings of earnings announcements, I think the likelihood is that prices will move up into the earnings reports. IMO, the vague fears of the oil producers' agreement unraveling won't be sufficient to derail this unless there is enough evidence of it to seriously tank oil prices. I don't see the main problem being heavy shorting but the kind of nervous profit-taking and trading attitude that is being espoused on this thread. That's why I think the likely resolution may be a move up that catches a lot of people with their pants around their ankles. Remember that this is perhaps the best value sector in the market. Once more people feel secure enough to commit to that it will already be rocketing. You can see hints of this in the price action of RIG, which I think is the drilling company with the greatest investor confidence. I think the others will follow shortly. good luck, Baird