Posted on 07/10/2006 12:11:27 AM PDT by M. Espinola
OIL PRICES will soar to well over US$100 a barrel and stay high as part of a sustained commodities bull run that has another 15 years to run, billionaire United States investor Jim Rogers told Reuters in an interview.
One factor that could bring down the price would be a bird flu epidemic, which would send all asset classes plummeting, he said, although oil would probably fall less than other markets.
"We're going to have high oil prices for a very long time. The surprise is going to be how high it goes," Rogers said.
Reiterating earlier comment oil prices would hit at least US$100 a barrel, he said: "It will be much more than US$100 before the bull market is over."
U.S. light sweet crude hit a new record of US$75.40 a barrel on Wednesday and was trading at close to US$75 on Thursday.
Rogers, a former investment partner of billionaire fund manager George Soros, has predicted the commodities bull run has at least 15 years to run.
"It's a major long-term bull market as far as I'm concerned," he said.
Aside from the bullish impact of tensions, described by Rogers as temporary, over Iran's nuclear ambitions and North Korea's missile tests, he said oil was drawing long-term support from the lack of large scale finds
He did not know whether the Peak Oil theory that oil supplies are either at or very near their peak was correct, but said: "If there is oil out there, you had better find it soon."
Apart from new supplies, a factor that could lower prices would be a widespread epidemic of bird flu spread between humans.
"If bird flu should break out, everything will go down and oil would go down to US$40, but I would still urge people to buy oil. It would go down less than other things and it would be the first to go back up," said Rogers.
Rogers has set up the Rogers International Commodity Index for gaining access to the commodity markets.
In the first half of this year, it outperformed its much bigger rivals the Goldman Sachs Commodity Index and the Dow Jones-AIG Commodity Index .
While the RICI gained 9.7 per cent in the first six months of this year, according to Reuters data, the GSCI rose 5.3 per cent and the DJ-AIG gained 3.6 per cent.
Rogers said he could not say exactly how much money was in the RICI, but it was at least $4 billion.
Soros was also monkeying around on the Asian markets, notably on the Hang Seng and Nikkei markets, in the 1990's, managed to drag down Asian currencies.
Yes....we've already touched upon that. :-)
I do recall it was a WaPo article.
It gets people "Googlin'" for more. LOL
Yes, it does. LOL
Coal Gasification 2006: Roadmap to Commercialization
Brazil has already gone full steam ahead with cane sugar gasification due to the fact the South American economic giant is the leader in the production of cane sugar, in addition, oranges, coffee and Brazil has even taken the lead in soybeans.
Thanks! That is very interesting info.
Let's go Nucular. :)
(And I want it said just like that to drive the moonbats batty!)
Remember last year when they told us (through the media) that this summer gas would hit $3.00/gal?
Translation: "We're gonna screw ya. But we're gonna be nice and tell ya when we're gonna do it, how we're gonna do it and by how much we're gonna do it!"
"And you poor bastards can't do anything about it. Ain't power GRAND??!!"
The democrats need oil to be high to have any chance of winning at anything. Also the price suddenly backed off on Friday, if this fellow didn't get all his shares sold, he would need to pump oil shares.
I understand what you are saying and it's true, however if one believes in these prognostications from guys who have been previously correct then even little guys can still profit. Just think about the some schlub with a little account to trade oil or whatever other commodity, stock, currencies, bonds, etc.
Return toward the end of 2003, when crude oil was hovering around $29ish $31ish per barrel. If the schlub bought some real long, cheapo call options at a strike price of between $60 and $70, and held them, selling when his options hit the strike prices he made between 30k & 40k on 'out-of-the-money' options he paid under $250 for.
What I am saying is if guys such as Jim Rogers are stating oil could go well beyond $100 a barrel, bet they are playing it safe and going long on the 'energies', while shorting other market sectors.
Think about this as well, if oil prices double in the future, in which direction will stock indexes be price trending? Will gold, silver & platinum simply sit at current price levels once oil soars due to Iran, North Korea or some other horrific global or domestic event(s)?
Jim Rogers is an unbelievable tool. Ever try to carry on an actual conversation with the man over basic economics? Don't bother. He's living proof that making out like a bandit in investments does not equate to having a keen grasp of the larger picture. I'm surprised he's stopped fellating China long enough to talk about anything else.
Oil prices will get a lot more interesting, if we allow Iran to build nuclear weapons and help countries like Syria and Sudan to do the same.
It's really just an excuse to for the speculators to bid the price up and make Billions per week. Iran has had Surface to Surface anti-shipping missiles lining the Straights of Hormuz for decades. That's the real threat to oil flow, and they were there when oil traded at $8 a barrel not to long ago.
The Korean kerfluffle is the same deal, hype to increase the fear premium.
Liberals are having orgasms over this...finally!...everybody has to ride a bike to work!
'Oil will hit well over US$100 and stay high'
Good! Buy XOM.
The difference is that if Iran could heave a nuclear weapon
into the Saudi/Gulf States/Kuwait oil installations, 100 dollar oil would be a dream scenario.
With that one act the economies of most of the world go into the toilet.
What's the story with the supposed huge amounts of oil (in shale I believe) in Utah and Colorado? Is there anything to that?
Please..."Could have"...Pakistan and India developed the bomb in the 90's and oil sold at $8 per barrel.
I think it is fairly obvious that there is Enron style irrational exuberance occurring in the oil markets.
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