Managers of Van Eck's Global Hard Assets and Worldwide Hard Assets funds have raised the oil and energy weighting in each to the maximum level of 50% of total assets, based on a belief that oil prices will hold near prevailing levels. "High oil prices look sustainable for the next several years," says Derek van Eck, copresident of Van Eck Global and manager of approximately $380 million in the two New York-based funds. "We plan to stay at the maximum weighting for the sector." He began increasing the funds' allocation to oil and energy assets in March 1999, based on the view that OPEC production cuts at that time would spark higher oil prices. Van Eck expects the recent OPEC production increase to lead to a short-term price dip. (At press time, the Nymex price for West Texas Intermediate had fallen just below $30 a barrel, from more than $32.) "But production cannot be increased substantially for an extended period," he says. "There is no excess capacity in the oil industry, and non-OPEC production is peaking." Among stocks that he believes might benefit are Santa Fe International, a deepwater driller, Ensco International, an offshore driller, and Tidewater Inc., which provides offshore supply vessels and marine support services. -Petroleum Finance Week