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

To: jbe who wrote (23035)	5/29/1998 10:14:00 AM
From: Lazlo Pierce	Read Replies (2) \| Respond to of 95453

Man what a whipsaw opening. We dropped like a brick, took off like a rocket, then the rocket crashed and burned. Is oil being volatile this am? Dave

To: jbe who wrote (23035)	5/29/1998 11:52:00 AM
From: diana g	Read Replies (1) \| Respond to of 95453

Re: OPEC intentions This from last Sunday (Bold is from me) ABU DHABI, May 24 (Reuters) - OPEC President Obeid bin Saif al-Nasseri of the United Arab Emirates said on Sunday he was not happy with current oil prices, saying intervention might be needed if prices stayed low. ''We are not happy with the current prices,'' Nasseri, who is also the UAE's minister of petroleum and mineral resources, told reporters during an oil conference in Abu Dhabi.''The current price is low and if it continued for a long time, it may necessitate an intervention.'' But he said that there was currently ''a kind of stability'' in prices on the oil market. ''If we see that there is an increase in supply then measures to correct the situation and to reduce supply are necessary,'' Nasseri said. ''These measures include cutting production which will be subject to many discussions between the organisation's (OPEC's) members and those outside.'' ................................................. ''The current price is low and if it continued for a long time, it may necessitate an intervention.'' "These measures include cutting production which will be subject to many discussions..." I think that the phrase "if it continued a long time..." and the word 'many' are the key to OPEC's intended purpose with this statement. They are superfluous except to convey the idea that the current oil price is acceptable, and that discussions in regard to production cuts would be long and possibly fruitless. Why give this impression? IMHO OPEC is jawboning prices down (and likely doing other things covertly) to hold producers' feet to the fire while trying to arrange agreement to production cuts prior to the june 24 meeting. I suspect a complex agreement is being discussed. Until there is an agreement, I think OPEC will continue to act to provide an environment for the producers conducive to working out an agreement----that is, a low oil price environment. I think that it is unlikely we will hear any good news from the producers this early -- much too far in advance of the meeting. (Of course I'm often wrong.) So I expect to see some buying today going into the weekend (on hopes of a positive statement from producers, and a general belief that the sector is over sold) followed by more selling next week when good news doesn't materialize, and oil stays low or goes lower. Other Opinions? regards, diana