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To: marc chatman who wrote (30255)	10/1/1998 3:40:00 PM
From: Big Dog	Read Replies (5) \| Respond to of 95453

I see an oil quote for Nov at 16.25, up 11 cents Am I missing something? (This isnt the "normal" place I get quotes from.)

To: marc chatman who wrote (30255)	10/3/1998 5:43:00 PM
From: Paul Angell	Respond to of 95453

marc, There's nothing wrong with OPEC saying that they are currently not considering further cuts in production and they are monitoring the effects of present cuts. I looked at charts for world oil supply over the last 2 years it seems that prices should be in the range $20 - 25 if they cut 4mm bpd down to approx. $71mm bpd. The current cuts should get them in the $17 -20 per barrel and that is where they say they want to be. Note that few of the NON OPEC countries (except Norway) are volunteering to cut back any?? It seems like a no brainer for them to cut 6% and get a 30% price rise but remember that not all of the rise is net revenue and so they have a cautious game to play to maximise the NPV of their assets while maintaining cash flow. I have a feeling they will wait to see how the US winter looks before considering further cuts. Regards, Paul.