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To: bob stroup who wrote (37510)	2/13/1999 11:43:00 AM
From: Mike from La.	Read Replies (3) \| Respond to of 95453

A lot of hits on Saudi Arabia's role in low prices, making them the villain with a secret agenda. That may be, I don't know, but there is another possibility. Their position , once the glut hit, was that everyone had to abide by their quotas. They may be doing what they're doing in order to force order on OPEC. Force is the key word, because it's obvious there are players who would only respond to force, Venezuela being one. They have now apparently come into compliance. Unless there is a hidden agenda, Saudi is following the same policy it always has, cooperate on production and everyone makes out. The news services have started putting a negative twist on the Saudi's walking out of the last formal OPEC meeting, labeling the Saudis as being uncooperative. But they walked out because there was still non-compliance. Don't forget that around November last year the Saudis unilaterally reduced shipments by 8%. I think the silver lining may be that the Saudis will force OPEC compliance to any agreements, and may bring in other producing countries as well, though Chavez seems to be working that angle. Hope I'm not being blindly optimistic. It means we all are placing a huge bet on the outcome of the next OPEC meeting. If Baker Hughes is right about their projection, maybe we are getting close to the turn. The most optimistic outlook I've seen in a long while. Mike from La.