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To: yard_man who wrote (2647)6/28/1998 6:57:00 PM
From: Joseph G.  Respond to of 86076
 
Two things I see: (i) Kuwait's cost of production is about $1.50/b, (ii) they have no budgetary plans to cut production as per their OPEC pledge. Assuming Saudis etc. have a similarly low costs, they may try to drive Russia out of the market, whose cost is more like $8/b. US costs are high too, needless to say.