driftwood2

Marc Faber, Jim Rogers and Boone Pickens - Bullish on Oil

Oil consumption is predicted to decline this year. Oil exploration is slowing down but it takes several years anyway to develop a new oil field. A lot of projects to get more oil started in the last few years are only just coming on line. In the long term, oil will go up but it can easily stay depressed for a year or two before then.

Marc Faber, Jim Rogers and Boone Pickens - Bullish on Oil

I don't have any faith in oil to rally this year. The economic collapse will be widespread and deep. It will crush demand. Also, with oil low, opec countries will have a hard time keeping honest with quotas. I think what has been shown in the last few months is that oil and commodities in general were only high in price because of hedge funds. Now that hedge funds have permanantly had a cut to their funding with the collapse of investment banks and also had a temporary cut in their funds with all the redemptions, there is nothing to support a high oil or commodities price. Oil is very cyclical. When it rises, it rises a lot. When it falls, it crashes. I expect oil in the 20's this year.