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

To: Jamey who wrote (31686)	11/11/1998 12:24:00 AM
From: Rob Shilling	Respond to of 95453

Russia just started increasing output and I don't think it is as huge as the media reports (remember it dropped at first). Mainly because the financial crisis has created all sorts of bottlenecks and tax problems that have prevented oil from being exported. Also, I read that Russia is nearing the point of being a net importer because its oil industry has been decimated by lack of cash to reinvest due to high taxes. Russia needs western investment but have been very slow to set up production sharing agreements. I guess I am in Slider's camp in that I don't think the "glut" is a big as reported. OPEC is taking 2.7 mbpd off of the market, we have had production reductions for a period of time in Austrailia, Nigeria, Columbia, and the Gulf of Mexico. Marginal wells have been shutting down. The major industrial countries minus Japan are growing. Yet, there is a "glut" mainly determined by the fact that the API statistics show there being 25 more million barrels of oil in storage in the U.S. than last year. I don't know of any other storage numbers that can be trusted. Right now world-wide numbers seem to be variable by about 300 million barrels. Now our winter is looking colder than normal, we may be days away from an Iraq strike, and yet oil was up for the first time in 7 days today?? I just don't get it.