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

To: BigBull who wrote (36358)	1/31/1999 12:50:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 95453

Big Bull: Suicidal is almost to kind a word for the "pump at any cost to gain market share" philosophy. As I pointed out in an earlier post, the demand for oil is very inelastic with respect to price. That is a huge price drop is required to increase consumption significantly. If the big producers were to cut output by 5% (3.5 mbd) I estimate that oil prices would jump 40-50% within 6 months. Perhaps these guys are finally getting it as well as recognizing the nefarious role played by Saudi Arabia. That feudal regime's oil policies have long been directed at helping its American masters rather than its own people or the people of other OPEC states. But it does appear that the price has now fallen too low even for the Saudis and their US handlers.