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To: Rob Shilling who wrote (32842)	12/14/1998 10:36:00 PM
From: Rob Shilling	Read Replies (1) \| Respond to of 95453

A reason not to just look at U.S. storage levels: moneynet.com@NEWS-P2&Index=4&HeadlineURL=../CategoryNews/CategoryNews.asp&DISABLE_FORM=&NAVSVC=News\Category So China, drew down its storage in October, yet oil prices seem to be overly affected by API statistics which are just U.S. numbers. Unless one looks at world-wide storage numbers, the whole story has not told. U.S. storage is only one piece of a very large puzzle.

To: Rob Shilling who wrote (32842)	12/15/1998 12:29:00 AM
From: Douglas V. Fant	Respond to of 95453

Rob, You're right. I know of a number of independent producers who are just producing leases one day/month in order to hold the oil & gas lease but hang on and hope prices improve.... Sincerely, Doug F.

To: Rob Shilling who wrote (32842)	12/15/1998 11:54:00 PM
From: Tomas	Respond to of 95453

Rob: RE: The IEA numbers Perhaps Iraq can explain a part of the discrepancy? Iraq is an OPEC member, but it has not been a part of any OPEC agreements in 1998. Through the first 8 months of 1998, Iraqi crude oil production was averaging 2 MMBD. In September and October Iraq pushed its oil sector "to the brink" in order to maximize oil production and exports, production reached approximately 2.4 MMBD in October. Now in November/December output is down again. About 550,000-600,000 bbl/d of the output is consumed domestically. But even if the Iraqi supply is added, we still have a global drawdown in world-wide storage currently.