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.

Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: JHR who wrote (7761)	3/13/1999 3:01:00 PM
From: Thean	Read Replies (1) \| Respond to of 14427

JHR, let him go. His self confidence is as fragile as the Prozac tablet in a glass of water. As to what to root for - higher oil price or higher inflation potential, I think it's best to let nature take its course and we chart our course accordingly. Being too attached emotionally to something one roots for can turn one into another SOB. <GG> We don't want to do that do we? Now for next week, there is no telling which way oil and the drillers will go. One could get an intermediate top next week for the drillers with another top to come as oil stabilizes here between $14-15. A year ago it took the drillers six weeks after the initial runup after OPEC's announced cut to peak. If we treat last week as week #1, we have 5 weeks to go provided oil stays where it is +/- $1. Can't one count on history??? The land drillers have run up quite a bit more than everyone else so we may see some rotation into the deepwater and service companies. I don't see a big danger of a big selloff back to their recent low as long as oil stays where it is +/- $1. Longer term (6 weeks out and longer), there are still plenty of worries that will pressure oil price and the drillers. Until the majors start revising their e&p budget upward or increase their future budget, the price ceiling cap on the drillers will not be lifted. Afterall, all the money these drillers make has to come from the e&p budgets of the oil companies. Speculation can only carry them so far. Oil price increase can fuel this speculation but if global demand continues to struggle the oil companies will not hike their e&p budgets prematurely. Big investors are not stupid enough to treat them like they treat internuts <GG>