There was an interesting story which stated:

"Soaring oil prices climbed still higher Wednesday..."

"In addition, inventory data confirmed a large decline in heating oil stockpiles."

But then gave a glint of hope...

"Analysts said the market reversed course after officials of Saudi Arabia and Norway suggested they think the world oil glut has been erased. That led to speculation that OPEC might not be certain, after all, about extending its oil cut agreement from March through September."

"...If the market gets the impression that OPEC's not going to extend its cuts, the explosive bull market that we've had recently definitely will be at an end..."

On the other hand, why would't they want to sell their product at a higher price, and over a longer time? They would seem to make more money, and over a longer period before the wells dry up!

Comments?

-- Mad Monk (madmonk@hawaiian.net), January 26, 2000

Answers

Monk:

Your link took me to a story about Greenspan and borrowing - it may be that you linked to a different story. At any rate, March crude oil was DOWN .48 per barrel today, not up as the snippet from the story indicates.

I think the Saudi's learned a big lesson in 1973 - a worldwide recession eventually affects them too. They'd like to extract the maximum amount of money from us without driving the economy into the tank.

-- Jim Cooke (JJCooke@yahoo.com), January 26, 2000.

Comments:

"Yada, yada, dada ..."

"Blah-dy-blah-dy-blah ..."

"Yakkety yakkety yak..."

More spin, MM. Just more and more spin. Gotta say something. Keep the news stories flurrying, fill the column inches, span the airwabes with the words of infobabes.

>"<

>"<

-- Squirrel Hunter (nuts@upina.palmtree), January 26, 2000.

The powers that be do not want oil to get too high. Impacts on the world economy, sanctions, and last but not least more competition from other oil supplies that may not be economic to develop at $20 per barrel but are very profitable at $30 per barrel {North Sea oil anyone?) could again cut into their profits. Would the North Sea fields have been found and developed if oil stayed under $10 per barrel?

-- Moe (Moe@3stooges.gom), January 26, 2000.

Moe - You're right, the powers that be do not want the price of oil to get too high. Is it just possible that the "powers that be" are the actually the "powers that wanna-be"? In fact, I don't think Greenspan, Texaco, the Arabs, or the Israelis (wow, that is stretching it) have anything whatsoever to do with the price of oil. I think it's us guys pumping gas in our trucks, and deciding on that day whether or not we're going to make that next trip. What if we decided to be more domestic, make what little cash we have stretch a little further, and despite all the media manipulation, did what we wanted for a change?

-- Okie Dan (brendan@theshop.net), January 27, 2000.