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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Pigboy who wrote (16513)	6/9/1998 5:11:00 PM
From: jad	Read Replies (1) \| Respond to of 29386

Mics input from Yahoo BB: This is a post regarding day rates and Raymond James recent downgrade: <<Having read this report, what you didn't mention was that he stated day rates would need to fall nearly 80% from there current levels in order to justify the current stock price of TMAR and earnings projections of $1.23 (15 times 1999 earnings). He considered this scenario "highly unlikely". He also stated that boats are being mothballed by Tidewater which has had the affect of keeping day rates reasonably attractive for the sector. He mentioned that 40% of TMAR's revenue comes from outside the gulf where day rates have seen no erosion (the North Sea, for example). >> FOCUS-Asia demand slump scuppers oil rescue plan By Richard Mably LONDON, June 9 (Reuters) - Asia's financial crisis is hitting world oil demand harder than expected and spoiling the output-cutting efforts of oil producers to rescue lowly crude markets, the International Energy Agency said on Monday. In its monthly Oil Market Report, the IEA said its projection for Asian demand this year was now running 750,000 bpd lower than first estimated. ''Weaker than expected demand data for a number of Asian countries indicate that the recent financial crises may be having a more marked and longer-term effect on demand than previously thought,'' the Paris-based agency said. ''The anticipated growth rate for the region of 4.8 percent has been adjusted downwards to 0.8 percent,'' it added. Failing demand and high stocks in the West have kept a lid on oil prices despite the unprecedented cooperation of producing nations to withdraw supplies. Benchmark Brent blend was valued at just $14.11 a barrel on Tuesday, more than $5 below last year's average price. Global oil demand will still rise this year to 75 million barrels daily but projected growth had been revised down by 300,000 bpd to 1.2 million, the IEA said. Only Chinese growth, forecast by the IEA at 7.7 percent, will prevent Asian oil demand from falling year-on-year. Outside China, demand is likely to fall on average by about one percent in a region which accounts for more than a quarter of world oil consumption. Oil demand in both South Korea and Indonesia was expected to fall by about nine percent this year, the IEA added. Before Asia's economic crisis southeast Asian economies were expected to record oil demand growth of between three and 10 percent. In addition, Indian demand growth has been downgraded by the IEA in the past nine months from 10 percent to 4.8 percent. World demand, at 75 million barrels daily, will still rise this year but the IEA has cut its projection of demand growth by 300,000 bpd to 1.2 million. That's a third lower than projected late last year. The agency said second quarter global demand had probably proved a huge 500,000 bpd weaker than anticipated just last month. Apart from Asia's woes, demand in the West in recent months had slumped because consumers built stocks earlier in the year when prices were at nine-year lows. ''The annual growth in global demand in Q298 is expected to slow to one percent from the 1.7 percent achieved in the first quarter, partly reflecting an unusual and significant secondary and tertiary stockbuild in Q198,'' the IEA said. The agency's warning on Asian demand will provide food for thought for oil producers who are in the midst of a second round of output cuts aimed at pulling oil markets out of the bargain basement. Output from Organisation of the Petroleum Exporting Countries in May was showing improved compliance with the 1.245 million of cuts agreed by member states in March, the IEA said. The IEA said OPEC supplies in May indicated a million barrel a day cut compared to just 660,000 bpd in April. Non-OPEC supplies in May also were lower, down 520,000 bpd to 44.4 million but mostly because of essential North Sea oilfield maintenance rather than output cuts. Meanwhile latest inventory returns showed commercial stocks in industrialised nations still were rising. Stocks in Organisation for Economic Cooperation and Development (OECD) nations rose by 1.5 million barrels daily in April and by the end of the month were at the highest in at least 10 years. EIA-world oil demand, supply down in 2nd half 1998 WASHINGTON, June 8 (Reuters) - World oil demand and supply for crude is expected to shrink in the second half of this year from earlier estimates, the U.S. Energy Information Administration said Monday. The EIA, which is the statistical agency of the Energy Department, estimates that world oil demand will average 74.0 million barrels per day (bpd) during the third quarter of this year and 77.1 million bpd in the fourth quarter. That is down 200,000 bpd during each quarter from EIA's estimate last month. At the same time, the EIA expects world oil supply to average 74.9 million bpd during the third quarter and 75.8 million bpd in the fourth quarter, down 500,000 bpd in each quarter from last month's estimate. The EIA's latest projections were contained in the monthly update of its short-term energy outlook. The agency said its forecast does not take into account the agreement reached last week by Saudi Arabia, Venezuela and Mexico to cut their oil production by 450,000 bpd. The agency also said its forecast assumes that Iraq will export 1.6 million bpd for the rest of this year.