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: drsvelte who wrote (22055)	5/14/1998 11:29:00 PM
From: pz	Respond to of 95453

LONDON, May 14 (Reuters) - World oil prices made modest gains on Thursday, recovering from earlier losses when technical factors and OPEC news gave the market a hand. Benchmark June North Sea Brent expired flat at $14.68 at the close of business, but July which saw the most activity settled 17 cents a barrel firmer at $14.72. July Brent reversed its earlier fortunes, which saw the contract dip to a low of $14.35 a barrel, as technical buying kicked in on NYMEX, boosting it to a high of $14.85. "I don't know that we got excited about the OPEC news, but New York did and that helped pull us up," said one trader on the London futures floor. Qatari Oil Minister Abdullah al-Attiyah said on Thursday that Qatar, Saudi Arabia and the United Arab Emirates had reached consensus on the need for more output cuts if oil prices linger at current levels. Asked if the consensus was reached this week at a meeting of Arab oil ministers in Syria, he told Reuters in an interview: "Yes, Yes, Yes...This is what my feeling was during consultations." Al-Attiyah's remarks follow news on Tuesday that Saudi Arabia was keeping an open mind about the need for more output cuts if prices languish at current levels. However, al-Attiyah on Wednesday said he did not think output cuts would happen before a key oil ministers meeting in Austria in June. "More of them (OPEC producers) seem to want the same thing. The market has heard all these statements before but perhaps there is a momentum growing here for cuts," said one trader. A Gulf source said Saudi Arabia, Venezuela and non-OPEC Mexico, the architects of a March agreement which drew pledges from OPEC and non-OPEC producers to hack 1.5 million barrels from global oversupply, had been in contract in recent days over possible further cuts. If necessary, a decision could be taken before a key OPEC oil ministers' meeting in Vienna in June. Despite slight optimism on Thursday, markets have yet to respond to reports that Iraq had submitted its distribution plan to the United Nations for the expanded phase four of the "oil-for-food" program. Approval of previous Iraqi distribution plans have often proved contentious and a lengthy process. The present one includes large expenditure for infrastructure projects. The United States is proposing to extend the distribution plan to cover an 18-month period in order to avoid disruptions, to increase the effectiveness of monitoring the distribution of the proceeds and to more closely match the infrastructure expenditure. Iraq and some of its allies on the Council strongly oppose this. Baghdad's U.N. envoy, Nizar Hamdoon said the plan was handed over to U.N. officials in Baghdad on Thursday, and the rest lay in Secretary-General Kofi Annan's hands. Iraq is nearing the end of the third six-month phase of the programme, which runs out on June 3. A U.N. Security Council resolution in February was approved to raise the limit for oil sales from $2 billion to $5.256 billion over six months to meet the humanitarian needs of ordinary Iraqis. Iraq has said that it was likely to cope with only $4 billion of oil sales over six months given its current capacity of between 1.6-1.7 million barrels per day. Prices in dollars per barrel: May 14 May 13 (1256 GMT) (close) IPE June Brent 14.68 15.11 IPE July Brent 14.72 14.55 NYMEX June light crude 15.08 14.95

To: drsvelte who wrote (22055)	5/14/1998 11:36:00 PM
From: pz	Read Replies (1) \| Respond to of 95453

It sure appears by all the news lately that there will likely be an OPEC cut within the next 4 or 5 weeks, when OPEC meets in Vienna. Higher prices should equal higher stock prices for our oil service stocks. I just can't see any negatives out there for this sector, providing the market doesn't crash of course. In our local area of central Texas the land drillers continue to suffer because of lack of work. The land drillers will likely have a tough time until the fourth quarter, when drilling seasonally picks up. Regards, Paul