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.

Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Sam Quentin who wrote (3720)	6/15/1998 7:13:00 PM
From: wizzards wine	Respond to of 34811

Hi Sam, I'm sure Tom will answer that question. In researching this today, we find that with the Asia problem, and Asia consumed about 50% of the Saudi output and was increasing at 1,000,000 barrels per week: think that was the period???, but anyway the point being that they all had the production geared up to the increases seen as needed for the new world markets. The producers have not as yet slowed production and thus the storage capacity is nearing it's limit. Many are looking at shuting down until demand returns, as they are below break even points. JJ posted a futures site for oil and other things. The futures for oil are increasing toward 16-17 within 12-18 months. The Asia Problem will be contained and working toward a fix within the next 6 to 12 months... Watch Rubin!!! It's in the USA and Europes best interest to help resolve these economic problems...just watch... it will come around. Just my thoughts Preston

To: Sam Quentin who wrote (3720)	6/15/1998 7:25:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34811

Sam, He reads this thread and posts. Ask him directly. He posts under "james Ball". Take care, jan

To: Sam Quentin who wrote (3720)	6/15/1998 8:45:00 PM
From: james ball	Read Replies (2) \| Respond to of 34811

Tom Dorsey To Sam Quinton Concerning Oil. Please excuse spelling major story going on here and must get this off fast before power outage. It's becoming my second Albitross right behind Gold. Crude closed the day I was on CNBC at $15.93. I expected to see an assault at the $20 level and was feeling good shortly after as it moved up to the $17 1-2 level on the July contract. My thinking was that conventional wisdom then was that Venezuela would cause Opec to collapse. That technology would allow Venezuela, with tremendous reserves to better develop its oil reserves. The Government owns 60% of the governments revernues come from oil. They are a high dollar producer because of the low quality of their oil, thick. Their oil sells for less than Saudi oil on the market. They get about $2 less than the market value. At $11 3-4 now they get $9 3-4. Much lower and they will be hurting. I was sure the first round of talks would bring them all in line especially Venezuela. It apparently didn't happen as they expected or I expected. They all meet next tuesday and I feel confident that they will do something to cut production back more in line with demand. The discussion could go on and on. Preston hit the current situation on the head. One problem with being on the Show once a month is the inability to change one's opinion as the chart dictates. The high pole warning came at $16 1-2 later than month, which would have forced me to at least become much less bullish. The multinational Integrated oils have held up well and I still think you can buy CHV and XON here. The drillers have been hit the hardest. Be that as it may all sectors are on defense and we will have to see how this eventually plays out. The best I would look for now is a move to resistance at $14 1-2. Today crude moved past the 100% oversold level. Looks like I was dead wrong and the other guy was dead right. Production cuts will more than likely be pledged at the meeting coming up on the 24th. The Saudi's still think $25 is a fair price for oil. Tom