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

To: Czechsinthemail who wrote (23606)	6/8/1998 12:23:00 PM
From: Tulvio Durand	Respond to of 95453

We now have the whisper number for oil production cut needed to stabilize supply/demand. Besides the 1.7 million b/d cuts already pledged, an additional 900,000 b/d (total 2.6 million b/d) need to be cut through the end of the year. ... Industry analysts were in broad agreement Friday, before the announcement by Tellez, that the additional 450,000 b/d cuts agreed to Thursday by Saudi Arabia, Venezuela and Mexico need to be roughly doubled to ensure sustained price improvement into next year. The bigger problem, as I see it, is actualizing the pledges. Despite the pledges already made, only 900,000 b/d have actually been cut from the March production levels according to sources presented earlier on this thread. Combining this with emerging evidence of weakening world oil demand and limit-approaching oil inventories, I will not hold my breadth in expectation that the supply/demand balance will be restored in the foreseeable future -- regardless of pledged cuts. Our bargain oil-patch driller/service stocks are likely to become even better bargains. Tulvio