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To: marc chatman who wrote (26823)	8/3/1998 11:59:00 AM
From: marc chatman	Respond to of 95453

Is this the reason why oil tanked today? Monday August 3, 2:13 am Eastern Time Saudi may back OPEC cut ahead of Nov meeting KUWAIT, Aug 3 (Reuters) - Saudi Arabia may back a third round of oil cuts ahead of OPEC's November meeting if oil prices were still low in late September, a Gulf source said on Monday. ''However, if in Sept OPEC made good on its commitments (to cut output) and prices did not improve to much higher than where they are now, then Saudi Arabia and OPEC may not have to wait until November'' to agree on further cuts, the source who is familiar with official Saudi thinking told Reuters. But the Gulf source refused to say what price level the kingdom would like to see oil at in September before moving to seek a new round of cuts. He said Riyadh would study July and August output figures and if prices were low by late September and OPEC members had abided by the two earlier rounds of cuts, then OPEC ''might even agree on additional cuts ahead of the November meeting.'' Neighbouring Kuwait has said that if North Sea Brent failed to rise by some $4 a barrel to $17 in November then a cut of at least one million barrels per day (bpd) would be warranted. But other key oil exporters have said it could be too early to look at additional cuts. OPEC had agreed to cut supplies to a glutted market by a total of 2.6 million bpd since April 1. Saudi Arabia had originally said it would make an assessment when July numbers were known. I guess they are as good as their word -- unless, of course, they are lulling the traders into large short positions so they can spring a surprise action on them. HAHAHAHAHAHAHA!! Yeah, right!!