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

To: Lazlo Pierce who wrote (24523)	6/22/1998 2:51:00 PM
From: SJS	Respond to of 95453

14:23 ET Crude Oil Prices: August North Sea Brent trading 4.4% higher at $13.41 per/barrel. Stronger oil prices based on speculation that OPEC and other oil producing countries will again make effort to cut production in support of falling prices. Bounce in the price of oil lifting shares of oilfield services/drilling companies (HAL +2, CXIPY +3 1/4, CDG +2, RON +2, RIG +2 5/16, FLC +1 15/16) as well as the integrated oil stocks (MOB +2 7/16, CHV +1 1/2, XON +1 1/4, TX +1 1/8). In spite of previous efforts by OPEC members to reach production agreements, consensus view is that almost everyone cheating. _____________________________________________________ OIL AND AIRLINES STOCKS: Today, they get to have their cake and eat it too. At least until OPEC meets. This morning, Merrill Lynch raised earnings estimates for a number or airline stocks, citing lower oil prices. (Oil prices area major cost factor for airlines.) For example, 1998 earnings numbers were reportedly raised for Delta Airlines (DAL 128 +1) from $13.45 to $13.65, and for Alaska Air Group (ALK 52 1/16 +1 7/8) from $4.40 a share to $4.50. Not surprisingly, this has boosted airline stocks in general and the Dow Transportation index opened +25. As the day wore on, however, oil prices have started to trade significantly higher and are now up $1 1/2 to about $13.50 on July futures, while spot prices are about $060 a barrel higher. This has produced a rally in oil related stocks such as Exxon (XON 71 1/4 +1 3/16) and Chevron (CHV 82 5/8 +1 5/16) as well as services companies such as Schlumberger (SLB 67 3/16 +15/16) and Cooper Cameron (RON 54 13/16 +1 13/16). The Dow Transport index has started to tail off and is now down 5 points but the airline stocks cling to their gains. The jump in oil prices is apparently related to speculation that the OPEC meeting in Vienna on Wednesday will lead to production cutbacks. If the oil price gains hold, the oil related stocks are likely to benefit further, while the airline stocks suffer.

To: Lazlo Pierce who wrote (24523)	6/22/1998 5:36:00 PM
From: GlobalMarine	Respond to of 95453

The current Barron's issue also has an analyst saying the bottom is $10 or so. If current oil prices don't recover, it's game over on the exploration side, esp. if Iraq is eventually allowed unrestricted oil exports re-develops the infrastructure to deliver millions of bbls a day. Anyone know what Richard Rainwater is up to these days?