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To: Crimson Ghost who wrote (37096)	2/9/1999 9:15:00 AM
From: marc chatman	Respond to of 95453

<<European oil stocks weak today; OSX should follow.>> IMO, we are close to a resolution of the flag or pennant pattern in the OSX we've seen the past few trading sessions. As Gary has said, it seems the OSX is in "no man's land" and could break up or down. On the up side, watch the 50 day ema -- I believe it is 53.98. I believe one or two other posters have pointed out the interesting behavior in recent days where a few major components of the OSX would show nice gains on the same day that others would show losses. It is unusual since most of the time the issues move together. If I thought it were possible, I'd say the market forces were conspiring to hold the index in place while either accumulating or distributing individual issues.

To: Crimson Ghost who wrote (37096)	2/9/1999 9:16:00 AM
From: DavidG	Read Replies (1) \| Respond to of 95453

George, A response to the IEA which is a little more positive. Sorry I don't have the URL for it but here it is from Reuters in its entirety: LONDON, Feb 9 (Reuters) - World oil prices rose nervously on Tuesday after leading producer Saudi Arabia said it expected the market to begin recovering within a few months. Further signs of a slowing global demand, however, continued to anchor prices around $10 a barrel. International benchmark Brent crude was three cents higher by midday in London to $10.19 per barrel, still about $2 below a short-lived rally a month ago and almost $3 under last year's average price, which was the lowest for 22 years. "Growing demand (for oil) is expected. Demand in Asia is expected to pick up again and a decline in supply is expected. Based on these factors Saudi Arabia sees a price recovery in a few months," a Saudi official told Reuters. The comments flew in the face of a sombre warning on Tuesday by the West's energy watchdog, the IEA that world oil demand would recover even more slowly in 1999 than previously expected due to spreading economic slowdown in developing countries. The Paris-based International Energy Agency in its montly market report shaved its annual demand forecast, forecasting the world's need for oil would rise by only 1.0 million barrels per day (bpd) or 1.4 percent to 74.67 million bpd this year. "Prospects for upward revisions to demand are unlikely given the demand-inhibiting conditions that dominated 1998," said the agency, which last month forecast 1999 demand at 75.05 million. The IEA said that while signs of stability were appearing in some Asian countries, economic troubles in Brazil might well affect the rest of Latin America and there were worries about the strength of the Chinese and Indian economies. Such problems might ultimately affect North America and Europe, it said. "For these reasons, the downside risk to the oil demand projections remains greater than the upside," it said, adding that demand last year had proven even weaker than expected, rising by only 270,000 bpd. Higher demand in China, the rest of Asian countries outside of the Organisation of Economic Co-operation and Development (OECD) and the Middle East in 1999 was expected to be offset by stagnant demand in non-OECD Europe, Latin America and Africa and a continued decline in the former Soviet Union. Worsening the picture for the glutted market was supply discipline inside oil producer club OPEC which had deteriorated in January, the IEA said. It said initial estimates showed compliance by the Organisation of the Petroleum Exporting Countries with its own production target fell to 75 percent from 88 percent, with output rising by 248,000 bpd to 27.62 million bpd. Cash-squeezed cartel members are trying to curb collective output by 2.6 million bpd to try to raise flagging prices. Prices in dollars per barrel: Feb 9 Feb 8 (1212 GMT) (close) IPE March Brent $10.19 $10.16 NYMEX March light crude $11.68 $11.67 ((Peter Lardner, London newsroom +44 171 542 7930, fax +44 171 542 4453. london.energy.desk@reuters.com) REUTERS Copyright 1999 Reuters Limited. All rights reserved. Republication and redissemination of the contents of this screen are expressly prohibited without Reuters prior written consent.