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To: The Ox who wrote (30657)	10/12/1998 9:37:00 PM
From: Tomas	Respond to of 95453

OPEC to push for oil cuts. From AFP, October 13 ABU DHABI: OPEC has called on non-member producer countries to join any output cuts aimed at boosting oil prices. ''Any cuts should be agreed by all member countries. We are looking for non-OPEC members to support the idea,'' OPEC President Obaid ibn Saif al-Nasseri said on Sunday. ''It would be useless for one country or two countries to reduce production while others keep producing. Nobody would benefit from this,'' he warned at the opening of a Middle East gas summit. Asked about renewed cuts, he said: ''It is an easier position to extend cuts for a further six months. But what will dictate that is the level of prices and the level of demand.'' OPEC agreed at the end of June to cut back production by 1.365 million barrels a day (bpd), bringing the total cutbacks pledged since March to 2.6 million bpd. The Organisation of Petroleum Exporting Countries is aiming for consensus on the issue of cuts ahead of its next meeting, in November in Vienna, Nasseri said. ''In the near future, that is from now until the next meeting, there'll be lots of discussions and we hope to reach consensus. OPEC always in difficult times reaches consensus.'' On Kuwait's target price of $US17 a barrel for the benchmark Brent crude, Nasseri said: ''It is difficult to determine price and I think we should get a collective decision. ''There is no point in the UAE or other Gulf countries agreeing on something and others doing something else. It needs to be a collective decision to be an effective decision.'' On Saudi concerns for holding onto its market share rather than relying on cuts alone, he said: ''It is in the interest of all producers to get a fair price. Market share is important but dumping oil on the market won't be wise.'' Despite a high compliance with pledged cuts, lower than expected demand has been depressing oil prices, Nasseri said. But without the cuts, a freefall could have sent prices down this year to $US8 or even $US7 a barrel. In the medium term, the OPEC president said the cartel would need to accommodate the return of Iraq when UN sanctions are lifted. ''The Iraqis had their quota before UN sanctions and I think they will be looking to that share of the market OPEC has to do something to enable Iraqis to go back to their old share. ''These adjustments are inevitable,'' he said. Before the sanctions, imposed for Iraq's 1990 invasion of Kuwait, Iraq's quota was three million bpd for export. Saudi Arabia boosted production to make up for the shortfall. Iraq is currently exporting around 1.8 million bpd under a UN exemption to the sanctions aimed at financing imports of humanitarian goods. 203.22.79.35

To: The Ox who wrote (30657)	10/13/1998 9:01:00 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 95453

Markets discount the future. OSX prices are depressed now because the market anticipates serious earnings problems for the next few quarters. Similarly prices will rebound long before earnings improve. You have to buy these stocks when the sky is falling and sell them when all appears rosy.