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.

Gold/Mining/Energy : Oil & Gas Price Economics -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Flugum who wrote (139)	7/6/1999 7:20:00 AM
From: SDR-SI	Read Replies (1) \| Respond to of 350

For those interested in a commentary on the oil price rise from an international political intelligence point of view, this week's "Stratfor Global Intelligence Update - Weekly Analysis" is entitled Rising Oil Prices: Less There than Meets the Eye . The full text will eventually be posted on their website at stratfor.com and the following is the report's Summary paragraph: * * * * * * * * * * STRATFOR's Global Intelligence Update Weekly Analysis July 6, 1999 Rising Oil Prices: Less There than Meets the Eye Summary: Oil prices have gone up 80 percent in a couple of months. Twenty years ago, the world would have been riveted. Today, the world's equity and money markets remain indifferent and even soar in tandem. The doubling of the price of oil does not mean what it once did. Is the calm justified? To get at that question, we have to figure out why prices rose in the first place. We do not think that production cuts were the sole cause of the rise. Expectations of Asia's economic recovery and a growing feeling that Central Asia's oil may not make it to market were critical in driving prices up. Since we do not think that Asia's recovery will be all that dramatic and since Central Asian oil is a long-term issue, we do not think that prices will continue to surge, particularly since other mineral commodity prices have not kept pace with oil. * * * * * * * * * * Steve