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

To: CommanderCricket who wrote (44365)	5/9/1999 5:38:00 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

CC The "missing barrels" really is the result of IEA estimates of supply/demand. The formula should be world supply - world demand = increment /decrement to world stocks. The IEA estimates indicated that 300M - 400M barrels should have been added to world stocks by excess supply. They never appeared in world stocks and the IEA could not explain the discrepancy. This discrepancy has existed for a long time. The IEA, like most bureaucracies, has been very slow to admit that their data gathering is suspect. Matt was saying that this created an artificial surplus that drove down prices to unreasonable levels mainly thru speculation in oil futures (his excellent term of "paper barrels" rather than real barrels in real transactions). John