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Gold/Mining/Energy : Ensco International Inc. (ESV) -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (987)	4/3/1998 1:55:00 PM
From: Eric Jacobson	Read Replies (1) \| Respond to of 2005

Yiwu: I'm sure it did go to printing prior to last weekend's meetings. Regarding OPEC, it simply says that "OPEC appears unwilling or unable to cut production." As you are aware, OPEC did agree to a reduction, but it fell short of what most analysts believe is necessary to stabilize oil prices above $16 in the longer term, especially given their history of producing more than established quotas. Also, most of the countries who agreed to "reductions" will still be producing more than they originally agreed to produce - kind of like agreeing to lose 10 pounds when you're 100 pounds overweight. That's the nature of oligopolies - each member has a tremendous incentive to not live up to their end of the bargain, and OPEC has demonstrated an inability to reign in their members. I was just passing along the news. I don't know if oil is going to stay at $16/barrel, or fall to $14 or $12. Most people believe, though, that expenditures by oil companies will be reduced if the price falls below $15.