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

To: dfloydr who wrote (31257)	10/29/1998 12:59:00 PM
From: gregor	Read Replies (2) \| Respond to of 95453

>>>>I think I'd be filling up my tanks with all the oil I could get at these prices. The carrying costs are relatively low and the prospects for inventory appreciation seem good.<<<< Floyd: The pipeline is only so big; much cheaper to store it in the ground. Too many on this thread expounding the strategy of shorting this sector after the nice two week rally. Be very wary of such advice. There are some very fundamental forces at work here. We have already worked off a nice double bottom and for anyone to say they can call this market on a weekly or semiweekly basis needs to rethink strategy IMO. The kicker is the hurricane in the southern gulf. It has already disrupted supplies in Mexico and could possibly move into the Gulf and strengthen, disrupting supplies here. A month ago I predicted, prices of crude would decline after that last storm moved out and crude prices have declined since. The anticipated rally however came about as the crude prices were falling so go figure !! My prediction is the OSX hits 75 within two weeks. We may get a correction after that back to 65 0r 70 but I see 75 before 65.....

To: dfloydr who wrote (31257)	10/29/1998 3:41:00 PM
From: articwarrior	Read Replies (1) \| Respond to of 95453

You know if I had a vast "desert storage area to put all this "cheap Oil in" and the advantage of being both a producer and distributer of my product I would pump it into storage for a while...Off the books mind you so the glut doesn't appear...demand goes up and prices soar...gee I got this oil here to sell at maybe 10 % profit above cost of manufacture and distribution.... Great thought...Think it was done in the 80's and quite sucessful...Wonder how full the pits are now?