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

To: Crimson Ghost who wrote (37928)	2/21/1999 5:45:00 PM
From: Razorbak	Read Replies (1) \| Respond to of 95453

Current Prices Still Too High to Instill "Religion" <<This truly looks like an offer no rational oil producer can refuse. This recent bout of serious pain will bring relegion to both OPEC cheaters and non-OPEC producers.>> Prices are still too high, IMO, to instill the kind of discipline that will bring about religion among the OPEC cheaters and non-OPEC producers. Want some hard evidence? Witness the recent reports from Russia, the UK, and Oman... 1) Russia on February 19th... <<The role of the Organization of Petroleum Exporting Countries on world oil prices is diminishing because its members control less than one-third of world oil production, said Russian Deputy Prime Minister Vladimir Bulgak. "We should not overestimate the role of OPEC," Bulgak said at a government meeting. "OPEC's share of world oil production is just 30 percent and the organization stopped being an effective instrument for regulating world oil prices." Russia recently backtracked on earlier promises to reduce oil exports, saying it will slash production of oil products, rather than crude oil. Fuel and Energy Minister Sergei Generalov pledged to extend until July 1999 a plan to lower exports by 80,000 barrels a day to restrain world oil supply and bolster prices. Since July, Russian crude oil exports have been steadily rising.>> Message 7928932 bloomberg.com 2) The UK on February 16th... <<Short term, there appears to be little danger of a collapse in output. Wood Mackenzie, the Edinburgh- based consultancy, believes about 93 per cent of output from the UK continental shelf would still be economic with an average oil price as low as $7 a barrel, well below the present range of $10-$12. It also predicts UK oil output this year will surge by 14 per cent to a record average of 2.99m barrels a day, as companies seek increased volumes to offset lower prices.>> Message 7849793 3) Oman on February 21st... <<Oman's Oil Minister said oil producers must fully implement agreed output cuts in order to reduce the glut in the world oil market and prevent prices, already near record lows, from falling to possibly as low as $6 a barrel.>> <<Ten members of OPEC, excluding Iraq, last month made 72 percent of the 2.6 million barrels per day of promised output cuts, down from 82 percent in December, as Iran and Venezuela continued to flout an agreement to reduce the oil glut and boost prices, an OPEC document said. In the group's official monthly survey for January, compiled from 11 secondary sources, Iran met just 1 percent of its promised cuts, while Venezuela met only 74 percent of its commitment to cut 525,000 barrels a day, and Saudi Arabia made 88 percent of its pledge to cut 725,000 bpd. Al-Rumhy said "there are no saints" among the world's oil producers...>> <<The oil minister ruled out any possibility that Persian Gulf oil states would act alone to cut production further in order to boost prices. "The fear is that if the Gulf states cute production to stabilize the market, someone else will pick up that cut and increase their output," Al-Rumhy said.>> Message 7948477 bloomberg.com JMO of course. Razor