Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Crimson Ghost who wrote (36503)	2/2/1999 10:28:00 AM
From: SargeK	Read Replies (1) \| Respond to of 95453

OPEC Action, Last year, in order to get the existing agreed cuts extended, the SAUDI's indicated that if further cuts were needed to increase prices, that they would make unilateral cuts. I suspect that other OPEC and non-OPEC exporters will hold them to that promise. After all, SAUDI almost single-handedly created this mess by their 10% increase in production during a time ASIAN demand was on the decline. The latter situation is reversing as evidenced by the dollars drop against the YEN. This looks like another tumultuous year; but I think the overall trend for energy prices will be up, perhaps significantly! Since crude (like most commodities) is priced in dollars, countrys' whose currencys have strenghtened against the dollar are benefitting from cheaper energy prices. Lower prices generally result in greater demand. K

To: Crimson Ghost who wrote (36503)	2/2/1999 10:51:00 AM
From: SargeK	Respond to of 95453

Crude Production I think Venezuela's reiteration that they would comply fully with its current OPEC agreement to cut production of 525,000 barrels per day (bpd) is a precursor to agreements for further cuts next month. A cut of a modest 1 or 2 % by all exporters could transform the exagerated glut into a real shortage, quickly and dramatically since the worlds largest importer (the good Ole U S of A) has been shutting in the strippers and other small producers at an unprecedented rate. Coupled with the political pressure to save the domestic industry plus the economics of adding to the SPR while prices are low could very well add the spark to change the psychological dynamic. I pridict the OSX @ 60 and climbing by the end of March and if it breaks through major resistance @ 72, we could see 100, or better by years' end. But, of course, it is uncertainty that makes the game interesting. Duh! Did I say that? K