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

To: Snowshoe who wrote (32424)	12/4/1998 7:02:00 AM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 95453

Saudi Budget Deficit - $5 Billion Bailout/Collapse - ''Embargo'' next ? I have all ways found it interesting when reading comments on Saudi Arabia's net cost of producing Oil at prices near $2-3 Brl. Their true cost in articles I've read (because crude is tied to their budget & HUGE social programs) is really about $17... With a $5 BILLION bailout loan; can an embargo or Middle East Strife be far away ? History has shown us that ''interesting'' events occur when major commodity oriented Industries that are of prime importance to our National Security, are threatened. The Oil & Steel Industries are under virtual collapse; something or someone, is going to ''give'' here; and very soon... History has a way of repeating itself. Once again the '' Wise Old Sages'' of the Oilpatch appear to be correct in stating that $8-$10 Oil will in itself virtually guarantee $20+ Oil in a relative short period of time. Glut's produce over-reactionary cutbacks; which in-turn produce supply shortages, which in turn drive up prices... This article is a huge portent of things to come. The table is being set for historic bottom fishing in both the Oilpatch and the Steel Industry. LONDON, Dec 4 (Reuters) - Falling oil prices have forced Saudi Arabia to turn to its United Arab Emirates neighbour Abu Dhabi for a loan estimated by Saudi bankers at $5 billion to finance its soaring budget deficit, the Financial Times said on Friday. Senior officials in Abu Dhabi were tight-lipped about the loan. ''I know about the loan but I can't comment more than that,'' said one UAE federal minister. Top officials of the Saudi Arabian Monetary Agency, the country's central bank, were not expected to comment until Saturday or Sunday, according to members of their staff.