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To: Jamey who wrote (32171)	11/27/1998 11:31:00 AM
From: Mike from La.	Respond to of 95453

If there is any possible positive spin, it is this, maybe. The failure of the OPEC meeting was because of a market share war between Venezuela and Saudi, with Venezuela picking the fight by over producing. There an election coming up within the month in Venezuela, and the candidate with an overwhelming lead has used the issue that the Government has started a price war which has devastated the economy. He has promised to cut production and to cooperate with OPEC. I think maybe Saudi didn't want to strike an agreement with the existing Government because that agreement would allow the over production to continue, and they know the Vene government lies. So, they lowered the boom, and will wait to talk to the new Government after the election. My guess/hope is that the new government will very quickly comply with their present quota, and then all the OPEC countries will quickly agree to whatever cuts it takes no later their next March meeting, and maybe before. The present Vene government over production has put the final nail into the coffin, and the next president has an issue that will be a major factor in his election, so there is no reason for him not to follow through. Mike from La.