Posted on 01/19/2007 2:44:28 PM PST by Tolerance Sucks Rocks
Commodities expert Jim Rogers says that, while he can't pinpoint the exact timeframe, oil will reach $100 a barrel after a "correction." Readers will remember that Rogers predicted the start of the commodities rally in 1999.
"I'm just not smart enough to know how far down it will go and how long it will stay, but I do know that within the context of the bull market, oil will go over $100," Rogers said in a Tokyo interview. "It will go over $150. Whether that is in 2009 or 2013, I don't have a clue, but I know it's going to happen."
Currently, MoneyNews' sister publication Financial Intelligence Report is forecasting that oil will fall to as low as $40 a barrel.
Crude oil has fallen as much as 36.4 percent to a 20-month low since hitting a peak of $78.40 a barrel in mid July. Crude dropped to a low of $49.90 a barrel yesterday and has since rebounded to around $52 today. A 20 percent decline generally indicates a bear market.
But Rogers says the fundamentals for $100 a barrel oil are still very much alive. There hasn't been a major oil discovery in 30 years and economic growth in China and other Asian countries is boosting demand for oil, he says.
Rogers says the current correction in oil prices is to be expected.
"When you have big bull markets, 50 percent corrections, or retractions, are normal," he said in an interview yesterday. "It has often happened throughout history in a bull market."
Rogers pointed out that the gold bull market in the 1970s experienced a two-year correction before resuming.
"Corrections go down long enough to scare everybody out and make sure they give up, and then they turn around," he said. "We are in a secular bull market for commodities which has another decade or two to go."
On a side note, Rogers also revealed that he's holding airline shares, a strange investment given his prediction that oil will rebound to $100 a barrel. But the move is paying off.
"The only airline where I'm losing money in the last year is Japan Airlines," said Rogers.
Financial Intelligence Report, in its latest edition of "The Four Ways to Profit from the Oil Bust of 2007," recommends our favorite airline stock. To get your free copy, go here now.
© NewsMax 2007. All rights reserved.
Not.
Get a load of this...
Hey, get your Vespa now!!
Even a broken clock is right twice a day
This guy is an idiot.
My bets on Silver. SLW, SLV. 10 baggers in 5 years. No more than 5% of net worth in any single investment category. That is all.....
This guy was a meterologist in a former life.
Hope he can remember where he parked his car.
I predict oil will reach $100 a barrel at some time between now and the end of the world, too.
$100 oil is not sustainable, for the simple reason that alternatives are available at significantly less than that price.
But how quickly can those alternatives come on line? You can have 100 dollar oil for a while. None other than T. Boone Pickens thinks we will. The good news is, you wont't get there without a booming worldwide economy.
By 2050 world oil production will be 10-20% of what it is now. Can't say what the price might be; it might still be at $50.
Yeah, $100.00 oil. Someday, like when a Big Mac is $20.00.
$100 a barrel. $150 a barrel. $40 a barrel. $10 a barrel. What's an alarmist to do?
Solar cells are $5 a watt. Nothing is cheaper than oil even now.
In true bizzaro world context, the Fed would probably hint at their non-displeasure at a six-month run on oil to cool a sizzling economy which is "shocking" the CaNned BullCrap talking heads at the moment.
This is not news, it's an advertisement. (read the last sentence) Besides, just because somebody gets something right once by way of a lucky guess doesn't mean they are any more an expert than someone else. I won eleven dollars by predictin 3 numbers in a lottery draw, but people aren't coming to my house asking me for my picks for next week. I guess I should advertise more.
Damn way to hedge your bets there dude
LOL, yeah Jim Rogers is a real moron. Given his massive stupidity, god knows how he managed to build the Quantum Fund at a 3,365% rate while the Dow did 20% in the same time frame.
Sounds like somebody trying to protect his investments.
It will be $100 a barrel if the dimocRATS have their way. They are off to a good start.
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