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Article: OIL STOCKS FAIL TO KEEP PACE WITH BOUNDING WALL STREET
- Article from:
- THE JOURNAL RECORD
- Article date:
- December 22, 1987
- Author:
CopyrightCopyright (null) The Journal Record. Provided by ProQuest LLC. (Hide copyright information)
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Sinking oil prices customarily translate into a curb on inflation,
and last week this interpretation sent stock and bond prices bounding
ahead. Wall Street took its cue from recent meeting of the
Organization of Petroleum Exporting Countries after it became
apparent that the group was unable to stem overproduction and price
discounting.
But oil stocks staged a ho-hum performance. That was because
any sustained decline in crude oil is typically seen as crimping the
profits of oil-producing companies. On the New York Mercantile
Exchange, the price of oil, after climbing above $21 a barrel in
July, fell below $16 last week.
``That price could drop as low as $12 or $13 within the next ...