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

To: Ken Robbins who wrote (24638)	6/24/1998 10:06:00 AM
From: TulipMania	Respond to of 95453

(REUTERS) OPEC set to spark energy share rally =2 OPEC set to spark energy share rally =2 "This is stronger than most had forecast...major oil shares will rally on this," said Eugene Nowak, analyst at ABN AMRO Inc. Nowak warned however that crude oil inventories remain high and that compliance with agreed cuts would be key to any long-term rise in the price of oil and oil shares. The news is also expected to benefit the drilling and oilfield services sector, which has been hard-hit by declining oil exploration and development budgets. "You could see a pretty quick move, shares in the sector are trading on 15 times 1998 earnings and 10 times 1999. They have traditionally traded on 15 times next year's earnings," said Iain Smith, fund manager at Eastgate Management. He sees strong moves from Cliffs Drilling Co. <CDG.N> and Marine Drilling Cos <MDCO.O> as well as some of the deepwater drillers, such as Transocean Offshore Inc. <RIG.N>. ((David Chance, New York Newsroom 212-859-1902. Email david.chance@reuters.com)) REUTERS * end of story *