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

To: Chuzzlewit who wrote (24187)	6/15/1998 9:59:00 PM
From: Broken_Clock	Read Replies (2) \| Respond to of 95453

Chuz...so you think the USA policy of selling worthless $ to the rest of the world to support a 5.5 trillion debt is a better way to go? Time will tell... Oil will recover when it recovers. I think a "disruptive" event will be the near term cause.

To: Chuzzlewit who wrote (24187)	6/15/1998 10:36:00 PM
From: Czechsinthemail	Respond to of 95453

6/15/98 Slumping Crude Prices Again Pressure Stocks Of Oil-Service Firm NEW YORK -(Dow Jones)- Shares of oil-service companies were hammered Monday as world oil prices continued to plummet, further eroding the outlook for industry earnings. Earlier, crude-oil futures trading on the New York Mercantile Exchange fell below $12 a barrel, their lowest level in almost 12 years, and well below the $17 to $20 a barrel that industry observers consider to be oil's typical price range. At the close, Schlumberger Ltd. (SLB), the world's largest oil-services company and the bellwether for the group, was down $3.875, or 5.3%, at $68.875; BJ Services Corp. (BJS), a provider of pressure-pumping services, was off $2.625, or 9.5%, at $25; and offshore rig operator Ensco International Inc. (ESV), slid $2.25, or 11%, to $17.438, below its 52-week low of $18.813, set last Friday. The stocks of oil-services companies continue to be the most sensitive to changes in oil prices. They provide the drilling rigs, drill bits, surveys and other support for the oil business, depend on the capital spending of oil and natural-gas producers for their revenue. And with oil prices languishing below previous expectations, hurting these companies' cash flow, the likelihood is that spending plans will be curtailed. "The oil companies will have to cut back," said Morgan Stanley Dean Witter analyst John Lovoi. As a result, Lovoi, who reduced earnings estimates for oil-services companies a week ago, said Wall Street's earnings estimates for the industry will be reduced further in coming weeks. That doesn't bode well for oil-services stocks, which will have a hard time rebounding while estimates are falling. The Asian economic crisis, as well as warm winter weather, contributed to a glut of oil in global markets. Lately, the pessimism has been exacerbated by the perceived failure ofthe Organization of Petroleum Exporting Countries to lift oil prices. Shares of oil-related companies have been weak since October, when the price of oil began falling from its then-level of $21 a barrel. Although shares of many companies are at or near 52-week lows, investors have been reluctant to get back into the sector for fear it hasn't hit bottom yet.