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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 (42535)	4/18/1999 4:15:00 PM
From: diana g	Read Replies (1) \| Respond to of 95453

$21 Brent??? Hi George, That wouldn't seem unreasonable to me. I'm sure OPEC has a flexible plan and will adjust their output depending on a number of factors. If $21 Brent would not bring on too much non-OPEC production or otherwise have a negative impact which outweighed the advantage of getting more $ per barrel, I'd guess they'd be glad to take $21. My point is just that OPEC doesn't want High oil prices, and will act to lower oil prices if they get too high. 'How High is Too High' is probably the subject of a lot of thought and research on their part. George, I know you pointed out previously that they had several times over the months stated their 'high teens' or '$18-20' goal. Perhaps the statement to which you refer indicates they have decided to raise that goal, but.... It's always hard to tell if misunderstanding or mistranslation plays a part in what we read that someone has said. When I hear an interview being conducted back and forth thru a translator from English into another language I speak, I am almost always aware of misunderstandings taking place. And also, when reporters synopsize complex statements into shortened form for publication, it often makes a complete hash of the truth. Perhaps OPEC has raised its target price to $21. Or perhaps the Egyptian minister said something more complex, like: (The following is a fabrication.) "We are working together to achieve the best possible oil price balance which takes into consideration the needs of both producers and consuming nations. If Brent were to rise to $21 we would take action to lower the price; There is an upper limit to what we consider the proper price range. We do not want to inflict hardship on oil consuming nations, and will etc.etc.etc..." --which was reported as "Egyptian Oil Minister Says 'OPEC Wants $21 Brent.'" I don't Know something like that happened, but I wouldn't be surprised. Anyway, I guess we'll do Real Well with oil at $18 or $20 or $21. And maybe increased demand and other factors will lead to OPEC allowing the price to rise to $25 or even $30. But I doubt it. regards, diana